Market Updates

Daily Market Update - June 29, 2016

Daily market update

Early Morning Update

The Aug16 natural gas contract is up $0.05 at $2.95.  The Aug16 crude contract is up $.43 at $48.28.

 

Summary

A busy day yesterday as the July contract expired up $.201 to finish at $2.917.  This was the highest prompt NG settle price since August 2015, and with the market up again this morning, $3.00 prompt gas is starting to feel inevitable.  The main driver is significantly lower production caused by an explosion at the Pascagoula natural gas plant in Mississippi.  Todays’ estimated NG production level is 69.2 Bcf, by far the lowest level of the year.  And with higher demand from power burns and forecasted hotter temperatures for much of the country, the supply/demand balance is getting tighter.  The impact of higher NG prices is definitely being felt in the power markets as well, as most locations have risen sharply over the past few days.  Texas has also seen a sharp rise in summer pricing as very high demand is expected for the next two weeks - keeping summers all the way out the curve supported.  Storage injection estimates for the next several weeks are all quite low, also supporting the market.

Market Update 062916

Market Settles 062816

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