Daily Market Update July 21, 2017

Early Morning Update

The Aug17 natural gas contract is down $0.03 at $3.01.  The Sep17 crude contract is down $0.36 at $46.57.

Summary

Yesterday, the EIA reported a build into storage of 28 Bcf.  The build was below the consensus estimate of 33 bcf and below last years’ build of 38 and well behind the 5-year average build of 59.  This continues the pattern of slower-than-(5-year)average builds, due in part to sluggish production growth and demand which has been ticking higher.  Recent hot weather that has blanketed the country has cause power burns to move to their highest levels all year.  With the higher demand, we’re seeing ISO’s potentially setting their annual peak demand levels.  Weather forecasts for next week appear to show a slight easing in the very high temperatures levels along the eastern half of the country.  But fFor those in the west, forecasts still show well-above temperatures for the next two weeks.

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