Market Updates

Daily Market Update October 26, 2016

Daily market update

Early Morning Update

The Nov16 natural gas contract is trading down $0.04 at $2.74.  The Nov16 crude contract is down $0.86 at $49.10.

Summary

Nov16 pricing continued to slide for the 5th consecutive trading day, settling down 5.7 cents at $2.774/MMBtu. The Dec16 contract was more heavily traded yesterday, settling down 17 cents at $3.149/MMBtu. Near-term declines are starting to bleed into future calendar strip pricing. Calendars 2017 and 2018 are down 11.6 cents and 5.7 cents, respectively. Calendar 2019 is down 1.8 cents and calendar 2020 is down a penny. The expectation of increased renewable capacity in the future preserves market backwardation between 2017-2019 pricing. With this November on pace to be one of the warmest on record as above average temperatures are expected to linger, and production hovering around 71 Bcf/d, the new concern becomes oversupply while regional storage facilities are nearing capacity. If cold weather is slow to show itself, continued pressure on winter prices is possible.

Market Update 102616

Market Settles 102516

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