Daily Market Update September 11, 2018
Early Morning Update
The Oct18 natural gas contract is trading down $0.01 at $2.79. The Oct18 crude contract is up $0.21 at $67.75.
Summary
Despite record production and a bearish October weather outlook, natural gas prices ticked higher yesterday, with the prompt month settling at $2.804/MMBtu, up 2.8 cents on the day. U.S. dry natural gas production reached an all-time high of 83.7 Bcf/d, boosted by Northeast production, which also set a record on Monday of 29.9 Bcf/d. The National Weather Service is forecasting above-average temperatures in October, which should stave off any early heating demand. Power burn is up 1.1 Bcf/d today from yesterday, while demand in the ResComm sector declined 1.7 Bcf/d. Early yesterday morning, Energy Partner’s Revolution gathering pipeline exploded in Beaver Valley, PA. There were no injuries, and the only property damage was the pipeline itself. It is believed that this will have little to no impact on Northeast production.
Market Settles 091018
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