Daily Market Update August 8, 2017
Early Morning Update
The Sep17 natural gas contract is trading up $0.01 at $2.81. Sep17 crude is up $.03 at $49.42.
Summary
The natural gas market turned up slightly on Monday, with the September prompt month rising nearly 3 cents to $2.801. Calendar 2018 rose just over a cent, and calendar years 2019 and beyond moved up less than a penny. Weather forecasts updates show some slightly above average temperatures in the six-to-ten day forecast for the East Coast, a departure from the widely bearish outlook for the first half of August. The warmer temperatures are fairly contained to the East, while the Midwest and West Coasts are expected to be very moderate and mild. While weather is currently the primary influence on market pricing, production shows some potential for downward sway. The next two weeks are forecasted to outpace the year to date average by over 1.5 bcf/day, topping out close to 73 bcf/day. Strong supply, coupled with mild temperatures, could incite increased storage injections and further grow the surplus to five-year average levels.
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