Daily Market Update October 4, 2017
Early Morning Update
The Nov17 natural gas contract is trading up $0.06 at $2.96. Nov17 crude is down $0.02 at $50.40.
Summary
Without much change in fundamentals day-over-day, the November '17 NYMEX NG contract continued to slide, ultimately settling down 2.1 cents at $ 2.895/MMBtu. Since May 2017, the November contract has been range-bound, trading between $2.90-$3.20. Yesterday’s settle was the lowest November ’17 settlement price all year. While U.S. dry natural gas production is setting new records, lingering cooling demand due to warmer-than-average temperatures across the east coast provide an undercurrent of support to gas prices. Typically, this time of year allows for large injections into natural gas storage, but the warmer weather is limiting injections, with only a 58 Bcf injection reported last week and 46 Bcf expected in this Thursday’s report. Storage builds are normally in the 80s-90s at this time of year.
Market Settles 100317