Market Updates

Daily Market Update October 14, 2016

Daily market update

Early Morning Update

The Nov16 natural gas contract is flat at $3.34.  The Nov16 crude contract is up $0.39 at $50.83.

   

Summary

A bullish storage report caused a surge in natural gas prices on Thursday, reaching levels not seen since December of 2014, and breathing new life into a recent rally that had stalled over the past couple of days.  The prompt month reversed direction yesterday, completely erasing the 6.5 cent loss from the previous two sessions, and finished the day up 13.1 cents at $3.341/MMBtu.  Prices have been rallying in recent weeks due to slipping production, a string of less-than-expected storage injections, and growing concern over a cold winter.  The U.S. Energy Information Administration reported a 79 Bcf growth in natural gas storage inventories in the week to Oct. 7.  Not only was this less than the 84 Bcf build the market had anticipated, but, again, fell short of last year’s injection for the same week (97 Bcf), as well as the 92 Bcf five-year average.  Total storage now stands at 3,759 Bcf, and continues on track to end the season between 3.9 and 4.0 Tcf.  The EIA also reported that consumers are likely to pay 22% more for natural gas this winter than they did a year ago, with higher demand and colder weather leading to the highest winter natural gas prices in six years.

Market Update 101416

Market Settles 101316

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