Daily Market Update June 30, 2017

Early Morning Update

The Aug17 natural gas contract is trading down $0.01 at $3.03.  The Aug17 crude contract is up $0.34 at $45.27.

Summary

The EIA reported a disappointing build into storage of 46 Bcf, below expectations by roughly 10%.  The market initially rallied but the rally faded and the prompt ended up closing down $.052 to finish the day at $3.042.  With a brief exception when the prompt traded down to $2.91, the market has been in the $3.00 range since the beginning of June.  
Weather forecasts are showing above average temperatures on the horizon so demand will likely increase.  Whether the injections exceed market expectations will determine if the market is fairly valued or if it will trend higher due to potential lower end-of-season balances.  The market is calling for end-of-season storage levels to be roughly 3.8 Tcf but increased power burns from hotter weather could cause that number to fall, potentially setting up the winter to rally.

Market Update 063017 

Market Settles 062917