Market Updates

Daily Market Update September 23, 2016

Daily market update

Early Morning Update

The Oct16 natural gas contract is trading flat to yesterday’s close at $2.99.  The Nov16 crude contract is down $0.09 at $46.23.

 

 

Summary

After a slightly bearish storage report, the NYMEX NG contract fell by $.067 to close back below $3.00, at $2.99.  The NG prompt contract has been on a bull run since early August when weather forecasts began indicating that summer heat would linger.  And it has.  Weather forecasts continue to show well above average temperatures.  These high temperatures are causing power burns to again run above last years’ levels.  And with daily NG production levels hovering around 71 Bcf, the near-term market has reasons to be supportive.  Whether yesterdays’ dip in pricing is to be sustained will be largely dependent on if coal-to-gas switching reverses itself at these pricing levels.  In the past, pricing above $3.00 has caused a loss of power burn demand, which in turn helped pricing to move lower. 

Early estimates for next weeks’ storage report call for a build in the low 50’s, compared to last years +100 and the 5 year average or +98

 

Market Update 092316

Market Settles 092216

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