Daily Market Update August 18, 2017
Early Morning Update
The Sep17 natural gas contract is trading down $.02 at $2.91. Sep17 crude is up $0.11 at $47.20.
Summary
Yesterday, the EIA reported a larger than expected injection of 53 bcf. However, prior stocks were revised lower by 9 Bcf, so the net gain of storage was only 44 Bcf. The market seemed to take that as a somewhat bullish signal and ended up moving higher on the news, ultimately finishing higher by $.049 to close the day at $2.929. We’ll be looking for a similar build next week as temperatures are mostly moderate and power burn demand is lower, which should allow for storage to refill at a slightly faster clip.
Speaking of weather, it appears as though the pattern of warm west/cool east has returned as is forecast to remain through the balance of the month. Sep/Oct still look to be slightly higher than average.
Market Settles 081717