Daily Market Update August 7, 2017
Early Morning Update
The Sep17 natural gas contract is trading up $0.02 at $2.79.
Summary
On Friday, the September natural gas futures price fell 2.6 cents to $2.774/MMBtu. This was a net 16.7 cent loss for the week, and was the ninth consecutive week in which the market shed its price. Slight price gains this morning may be caused by bullish sentiment towards the market being oversold for September. Weather forecasts for the next couple of weeks still show bearish conditions for cooling demand, calling for average to below-average temperatures for the majority of the eastern half of the country. Weather patterns are expected to shift toward the warmer side for the eastern half of the country in the 16-20 day forecast. Lower-than-expected cooling demand and lower power burns year-over-year have had a negative effect on prices, and could mean an upsurge for storage injections, although analytics are still calling for injections below historical levels. LNG feedgas demand fell by 0.3 Bcf/d week-over-week, after reaching a high of 2.5 Bcf/d on July 29th, and exports to Mexico have remained flat, averaging 4.3 Bcf/d.
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