Daily Market Update August 14, 2017

Early Morning Update

The Sep17 natural gas contract is trading flat at $2.98.  Sep17 crude is down $0.22 at $48.60.

Summary

Last Friday, NYMEX September NG futures prices ended the trading session slightly lower, down by 0.2 cents to $2.983/MMBtu. This was after the market had a week of four-day gains. The majority of the upward pressure was on Thursday due to a disappointing injection into storage reported by the EIA, pushing the market up 10.2 cents that day. Even with some smaller than expected injections seen this summer, the end of storage levels are still estimated to be at a healthy level going into this winter. There is a lot of emphasis on weather lately, and forecasts are being analyzed closely pushing the market to trade up or down. The next couple of weeks are showing some warmth during the 6-10 and 11-15 day forecasts, mostly in the West Coast, Great Lakes, and New England territory. The heat expected for the Northeast could bump up demand levels for cooling demand from air conditioning units, and possibly lead to more lower-than-expected injections into inventory changing the expectations for end-of-season levels. The Tropics Weather Outlook, is showing that Tropical Storm Gert is no longer a threat to reach land, however, there is a another tropical wave with potential impacts to the Gulf later this week.

Market Update 081417