Market Updates

Daily Market Update - July 27, 2016

Daily market update

Early Morning Update

The Aug16 natural gas contract is trading flat to yesterday’s close at $2.71.  The Sep16 crude contract is down $0.15 at $42.77.

Summary

The oversupply of natural gas continues to outweigh extremely hot weather and the accompanying high demand for gas-fired electric generation.  The Aug16 natural gas contract lost another 3.5 cents yesterday, settling at $2.712/MMBtu, as August winds down as the prompt month and prepares to pass the baton to September at the close of business today.  The Sep16 contract was much more heavily traded yesterday, and it, too, lost 3.5 cents, settling at $2.677/MMBtu.  For the past three weeks, prices have been range-bound between $2.65 and $2.80, after rallying more than 50% the previous month.  U.S. dry production is down 0.8 Bcf/d today, after reaching 71.3 Bcf/d yesterday, and power burn declined 1.9 Bcf/d day-over-day to 38.8 Bcf/d.  Feedgas for LNG exports continues to grow, with deliveries to Sabine Pass jumping 240 MMcf/d from Tuesday to 950 MMcf/d today, which is 410 MMcf/d higher than the prior 30-day average.  The increase in flows suggest that the second train at Sabine Pass is now in service.

Market Update 072716

Market Settles 072616

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