Market Updates

Daily Market Update September 9, 2016

Daily market update

Early Morning Update

The Oct16 natural gas contract is flat at $2.81.  The Oct16 crude contract is down $1.00 at $46.62.

 

 

Summary

A strong day for the NYMEX NG prompt contract as that market traded higher by $.13 to close the day at $2.806.  A disappointing storage report showing a build of only 36 Bcf caused the market to move sharply higher.  Hotter temperatures and strong power burns are keeping demand levels very high, which is providing price support to the market.  But the move higher yesterday  wasn’t just limited to the front of the curve as in the past - Cal ‘17 was up a nickel and Cal ‘18 was up $.03.  Despite the move higher yesterday, the market is firmly within the range it’s been in for the past few months.  As shown on the chart to the right, the 12 month NG strip has mostly been between $2.90 and $3.10 since the summer began, and we’re still in that range.  Pressuring the market is the fact that NG production levels and the rig counts are slowly increasing.  Producers do seem a little more comfortable with the current price environment and are increasing production and hedging activity, which could be keeping a lid on prices. 

Market Update 090916

Market Settles 090816

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