Daily Market Update August 30, 2017

Early Morning Update

The Oct17 natural gas contract is trading down $0.03 at $2.95.  Oct17 crude is down $0.44 at $46.00.

Summary

On its final day of trading, the September NYMEX natural gas contract increased by 3.6 cents, expiring at $2.961/MMBtu, marking the tenth consecutive month that prompt month gas traded higher on expiration day. Market liquidity has been limited due to Hurricane Harvey, which, depending on the area, dumped anywhere from 29”-50” of rain in Houston over the past five days, and likely influenced the September contract to trade higher yesterday afternoon as traders balanced positions. Despite the devastation Harvey dealt to the gas production region, the market has maintained relative stability, only increasing 1.2 cents since Friday’s close. Analysts are still determining the full impact Harvey has had on market fundamentals, and market participants hope the EIA storage report tomorrow provides more clarity.

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