Market Updates

Daily Market Update - July 29, 2016

Daily market update

Early Morning Update

The Sep16 natural gas contract is trading down $0.02 at $2.85.  The Sep16 crude contract is down $0.43 at $40.71.

 

Summary

A disappointing storage report (+17) led to a sharp rally at the front of the curve, with the prompt month finishing up $.213 to close the day at $2.873.  The 12 month strip was higher by a dime but after that, there was little movement to the market, continuing the trend where all the price action happens at the front of the curve.  The primary reason for the low injection seems to have been the high power burns, especially relative to the volumes we saw at this time last year.  On the bearish side, NG production has crept up slightly over this course of the week, with the most recent data showing levels just over 71 Bcf/d.  Even with the slightly higher supply, estimates for next weeks’ storage report are calling for a very small injection, or possible a small draw.  While draws during summer have happened in the past, this highlights the very hot weather conditions the US has been experiencing and the increased reliance on NG power generation to meet demand needs.   

Market Update 072916

Market Settles 072816

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