Market Updates

Daily Market Update September 2, 2016

Daily market update

Early Morning Update

The Oct16 natural gas contract is trading relatively flat to yesterday’s close at $2.79.  The Oct16 crude contract is up $0.44 at $43.60.

Summary

Natural gas prices had one of the biggest single-day declines in the past month yesterday after the U.S. Energy Information Administration reported a weekly storage injection that beat all expectations.  EIA data showed a 51 Bcf growth in natural gas stockpiles in the week to August 26, where estimates ranged from 31 to 47 Bcf. The Oct16 NYMEX contract was down $0.05 before the report was issued, and nearly doubled on the news, eventually settling at $2.792/MMBtu, down 9.5 cents (3.3%) day-over-day.  Storage inventories now stand at 3,401 Bcf, 238 Bcf (7.5%) above last year at this time, and 334 Bcf (10.9%) above the five-year average.  Heading into the Labor Day weekend, the market is already factoring in cooler temperatures, despite weather forecasts showing the eastern half of the U.S. and the West Coast being warmer than normal.  Normal temperatures will be steadily declining heading into fall, and with them, the demand for natural gas.  Above-normal temperatures will tend to have a bearish effect on the market if they continue into late fall, as they stave off heating demand.

Market Update 090216

Market Settles 090116

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