Market Updates

Daily Market Update - June 14, 2016

Daily market update

Early Morning Update

The Jul16 natural gas contract is trading down $0.01 at $2.58.  The Jul16 crude contract is down $0.58 at $48.30.

Summary

The prompt month resumed its rally in the opening session of the week, rising 2.9 cents to settle at $2.585/MMBtu.  Near-term natural gas futures are getting support from weather forecasts, which show almost the entire country to be at above-normal temperatures in the 8-14 day outlook.  In its latest Drilling Productivity Report, the U.S. Energy Information Administration does not anticipate much change in natural gas production from June to July.  Although rig counts improved by six rigs (three oil, three gas) in the week to June 10, the market may have to rely on storage to meet increasing demand as we head into summer, with cooling demand ramping up and production remaining flat.  This should further cut into storage surpluses, which have been keeping a damper on recent price rallies.  Power burn is up another 0.4 Bcf/d today at 31.5 Bcf/d, but that increase is being countered by a 0.3 Bcf/d drop in res/comm demand.  U.S. dry production slipped another 0.2 Bcf/d today, now down to 70.1 Bcf/d.

Market Update 061416

Market Settles 061316

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