Market Updates

Daily Market Update September 30, 2016

Daily market update

Early Morning Update

The Nov16 natural gas contract is trading down $0.02 at $2.93.  The Nov16 crude contract is down $0.13 at $47.70.

   

Summary

The EIA reported its weekly storage report yesterday, showing a build into storage of just 49 Bcf, on the low end of expectations.  The market had been down prior to the report, then rebounded, then fell back to its pre-report level, closing down $.043 to finish the day at $2.959.  After the 49 bcf injection, storage now stands at 3,600 Bcf, still above historic levels, but the surplus is rapidly dwindling and should soon flip to a Y-o-Y deficit.  Even so, end of season expectations for storage are near 3.9 Tcf, a healthy amount. 

Bullish sentiment does exist in the market, namely in the form of lower NG production and higher power burns.  But despite those factors, the prompt NG contract has not been able to sustain trading above $3, a testament to the amount of coal-to-gas switching demand that is at risk due to elevated prices.  Looking ahead, the market appears to be waiting for more clarity on winter weather forecasts before a more definitive price trajectory can be determined.

Market Update 093016

Market Settles 092916 


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