Market Updates

Daily Market Update - June 8, 2016

Daily market update

Early Morning Update

The Jul16 natural gas contract is trading flat to yesterday’s close at $2.47, after breaking through $2.50 earlier this morning.  The Jul16 crude contract is up $0.64 at $51.00. 

Summary

The prompt month tried, but was unable to break through the $2.50 technical trading level yesterday, settling at $2.474/MMBtu, up 0.8 cent on the day.  Weather continues to be the driving factor of the recent rally, with warm temperatures pushing up cooling demand and helping to increase power burn.  Warmer-than-normal temperatures are expected to blanket most of the U.S., with only the Northeast and Northwest seeing below-average temperatures over the next two weeks.  Demand in the power generation sector is averaging 31.2 Bcf/d so far this month, up 5.4 Bcf/d from the 25.8 Bcf/d seen in June of last year.  Total U.S. demand is up 0.6 Bcf/d from yesterday at 65.1 Bcf/d today.  Dry production is projected to drop to 70.0 Bcf/d today, a 0.3 Bcf/d day-over-day decline.  However, with natural gas storage near record high levels, inventory surpluses would have to drop further to drive prices significantly higher.  Despite smaller storage injections so far this season, the U.S. Energy Information Administration is currently forecasting an end-of-season level of 4,161 Bcf, which would be the highest level on record to begin the winter heating season.  Other market analysts peg the end-of-season level between 3.9 and 4.1 Tcf.

Market Update 060816

Market Settles 060716

Set your ZIP code and utility

Enter a valid ZIP code
Unfortunately, we don't currently service this area. Please try another ZIP code.

Loading please wait...

Don't see your utility?

We currently only provide service to the listed utilities. For question, please contact 1-888-925-9115.

Loading...

54.224.60.122