Market Updates

Daily Market Update - May 4, 2016

Daily market update

Early Morning Update

The Jun16 natural gas contract is trading up $0.04 at $2.13.  The Jun16 crude contract is up $0.65 at $44.30. 

Summary

After sharp losses in this week’s opening session, natural gas futures rebounded somewhat yesterday.  The Jun16 futures contract settled at $2.086/MMBtu, up 4.4 cents as concern over declining production outweighed the fact that we have a near-record amount of gas in storage.  Production is projected at 70.6 Bcf/d, a day-over-day drop of 0.9 Bcf/d.  However, as has been the case lately, the morning projections usually get revised upwards later in the day, so the drop may not be as drastic as it first seems.  Still, production has been on a downward trajectory since reaching an all-time high of 73.8 Bcf/d on Feb. 19.  On the demand side, power burn has ramped up recently, with this week averaging 26.2 Bcf/d so far, despite temperatures in the low 60s.  Temperatures are expected to rise a bit by the end of the week, which could give an additional boost to demand.

Market Update 050416

Market Settles 050316

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