Daily Market Update August 10, 2018

Early Morning Update

The Sep18 natural gas contract is trading down $.031 at $2.92. The Sep18 crude contract is up $0.35 at $67.16.

Summary

After an on-par storage report, the market ended the day quietly by finishing up a slight $.006 to close at $2.955.  The EIA reported a build into storage of 46 Bcf, which was above last years’ injection of 29 Bcf but below the 5-year average of 53 Bcf.  
On the power side, we’re continuing to see prices creep higher with strong summer demand and regional basis increases.  California in particular continues to move higher as short-term prices there have been exceeding $100 due to high demand and gas constraints.  
Weather forecasts show a continuation of the pattern that has been in place for several weeks now:  very hot conditions on the west coast and north east, while the mid-con area is normal or even below-average.  

Market Update 081018