Market Updates

Daily Market Update - May 18, 2016

Daily market update

Early Morning Update

The Jun16 natural gas contract is trading down $0.02 at $2.02.  The Jun16 crude contract is down $0.10 at $48.21.

 

Summary

Mild weather conditions and concerns over the long-term viability of LNG exports kept the market mostly lower yesterday, despite more data suggesting NG production continues to move lower.  The prompt NG contract did finish higher yesterday at $2.048, up $.019 on the day.  But longer term NG prices did fall, with the calendars dropping by $.01-$.02 on the day.  LNG prices remain soft around the world, with rates in Japan and Europe at low historical levels, and promised production increases from Qatar and Australia on the way.  Lower prices in Japan/Korea and Europe would of course make US LNG less competitive, potentially jeopardizing the future of LNG exports projects that lack financing or long-term offtake agreements.  With lower long-term NG prices, power prices have all been sliding lower after steadily moving higher since late February.  The market continues to keeps its eye trained on summer weather and the soft NG production data, but for now the specter of weak LNG exports seems to be driving the market. 

Market Update 051816

Market Settles 051716

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