Daily Market Update October 20, 2017

Early Morning Update

The Nov17 natural gas contract is flat at $2.87.  The Nov17 crude contract is down $0.37 at $50.92.

Summary

The EIA reported a build into storage of 51 Bcf, slightly below expectations.  The market slid a little on the news but moved up throughout the day and ultimately finished up by $.019 to close the day at $2.873.  Longer-term NG also continued its trend higher with the Cal ‘19 and ‘20 strips moving higher.  It’s been a slow grind higher with those terms up roughly 4% over the past 2 months.
We’re seeing some weather volatility with some colder weather on the horizon for next week for the east coast after long periods of above-average temperatures.  Longer-term weather forecasts appear to be trending cooler with a greater chance of precipitation along the east coast due to the La Nina weather conditions. 

Market Update 102017