Daily Market Update October 6, 2017

Early Morning Update

The Nov17 natural gas contract is down $.02 at $2.90.  Nov17 crude is down $1.07 at $49.71.

Summary

The EIA yesterday reported a build into storage that just missed estimates, adding just 42 Bcf.  The market barely moved on the news and ultimately settled down $.017, closing the day at $2.923.  After falling sharply on Monday, this has been a very quiet week with the prompt month trading in a 5c range.  Total US storage has slipped below the 5-year average for the first time since January (3,508 bcf vs 3,516 bcf).  We’re expected to finish the year at a slight deficit to the 5-year average (3.84 Tcf vs 3.87 Tcf).
Several weather vendors have published winter weather forecasts and we haven’t seen any calling for extreme cold along the east coast, although there is disagreement whether temps will be average or above-average.

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