Daily Market Update November 3, 2017
Early Morning Update
The Dec17 natural gas contract is trading up $0.04 at $2.97. The Dec17 crude contract is up $0.25 at $54.79.
Summary
The prompt NG contract saw a small rebound in pricing after falling steadily since mid-October. The prompt contract finished up $.042 to close at $2.935. This comes after the EIA reported a build into storage of 65 Bcf, roughly in-line with expectations. Whether this move is the ‘dead cat bounce’, or part of a larger move higher is yet to be determined. The market has had its fair share of bearish news lately as NG production seems to set a new record every day, and weather related demand looks to be lower with the current November forecasts showing above-average temperatures for the major heating-demand centers. But there is widespread disagreement over the weather direction for this coming winter. While most forecasters feel there will be a La Nina weather pattern, its exact effect is not yet known.
Market Settles 110217