Daily Market Update October 12, 2017
Early Morning Update
The Nov17 natural gas contract is trading up $0.04 at $2.93. The Nov17 crude contract is down $0.70 at $50.60.
Summary
In trading on Wednesday, the Nov17 natural gas contract opened the session up almost six cents before losing stream mid-day and ultimately closing near flat to the previous day’s close at $2.889/MMBtu. Weather forecasts continue to show a warmer-than-normal trend keeping the month of October on track to be one of the warmest Octobers on record across the Northeast. Meanwhile, a weak cold front pushed into Texas this week, reducing power-related gas demand. The 6-10 day and 8-14 day outlooks, published by the National Weather Service, show above to much-above-normal temperatures across the United States for all areas east of the Rocky Mountains, delaying the onset of winter and keeping heating demand at bay for the time-being. The market is expecting an 86 Bcf injection into storage this week, which is in line with the 5-year average of 87 Bcf. End-of-season storage estimates continue to hover near 3.83 Tcf.
Market Settles 101117