Market Updates

Daily Market Update - July 25, 2016

Daily market update

Early Morning Update

The Aug16 natural gas contract is trading up $0.01 at $2.79.  The Sep16 crude contract is down $0.44 at $43.75.

Summary

A smaller-than-expected storage injection, crushing heat, and record power burn helped push natural gas prices higher on Friday.  The Aug16 NYMEX contract rose 8.5 cents in last week’s closing session, settling at $2.777/MMBtu.  U.S. power burn set an all-time record of 41.0 Bcf/d last Thursday, beating the previous record set in July of last year by 1.5 Bcf/d.  So far this year, power burn demand has set year-to-date daily records on 107 days, or 52% of the time.  Both July and August are expected to set individual monthly records this year, with July estimated to average 35.3 Bcf/d, and August projected to be 33.8 Bcf/d, both months higher than the record power burn demands set last year.  Despite the current bullish fundamentals, money managers investing in natural gas increased their net short position by over 10,000 contracts in the week to July 19, betting that the current gas surplus will weigh heavily on the market and drive prices lower once the current heat wave passes.  The National Weather Service is forecasting much of the West to cool off to normal temperatures, with parts of the Northwest and Southwest dropping to below-normal temps.  A slight cooling in the central Midwest portion of the country in the 6-10 day outlook is expected to give way to resurging heat in the 8-14 day forecast, while the eastern two-thirds of the country continues to bake.

Market Update 072516

Market Settles 072216

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