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Daily Market Update November 1, 2017

Early Morning Update

The Dec17 natural gas contract is trading flat to yesterday’s close at $2.89.  The Dec17 crude contract is up $0.52 at $54.90.

Summary

According to the National Weather Service, colder-than-normal temperatures continue to be confined to the northwestern U.S. while the remainder of the country is expected to experience warmer-than-normal temperatures for the next two weeks. New York City, for example, has a forecasted high of 72 degrees tomorrow, 13 degrees above the 30-year normal. With little support from weather-driven demand, the NYMEX Dec17 NG contract lost seven cents on its second day of trading as the front month, settling at $2.896/MMBtu. U.S. dry natural gas production has been steady above 75 Bcf/d since October 24, yet today’s forecast dropped production levels below 74 Bcf/d due decreases in the Northeast and Rockies producing areas. However, it is common for sizable revisions to be made to first-of-the-month nominations. Cove Point’s CEO released a statement on Monday indicating the LNG export project is still on time and on budget, meaning the Maryland facility will begin pulling feed gas next month and expects to be in service by the end of the year. Cove Point will be the second LNG export facility to begin operation in the United States.  Sabine Pass was the first. 

 

Market Settles 103117 

Market Settles 103017

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