Daily Market Update August 31, 2018

Early Morning Update

The Oct18 natural gas contract is trading up $0.04 at $2.91. The Oct18 crude contract is down $0.17 at $70.08.

Summary

Good news for those who don’t want summer to end:  Weather forecasts are showing very summer-like conditions to continue for at least another week.  Hot and humid forecasts along the east coast and mid-Atlantic show temps in the low-90’s and dew points around 70.  This should keep demand high and keep the potential for peak days alive.  
On the NG front, the EIA reported a build of 70 Bcf into storage yesterday.  This was slightly higher than expectations but did nothing to move the needle on pricing.  There was almost no movement in pricing throughout the entire curve, making for a sleepy summer trading session.  Power prices did creep slightly higher in the eastern markets as the unrelenting heat kept prices firm.  As it stands now, forecasts are showing the potential for relief to these temps starting the 2nd week of September.  

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