Daily Market Update August 14, 2019

Early Morning Update

Summary

Yesterday was a mixed bag for NYMEX natural gas as the near-term rebounded after falling to start the week, while the further out calendar strips tested new all-time lows. The September prompt month contract gained 4.2 cents to close at $2.147/MMBtu, and the twelve month-strip followed, as it gained 2.7 cents to $2.32/MMBtu. The upward momentum slowed out beyond the 2020 calendar strip, which climbed 1.8 cents to $2.38/MMBtu, as the 2021 strip added under half a penny, and the 2022 strip remained unchanged and at its all-time low. Calendar strips 2023 and 2025 set new all-time lows, as many of the strips out to 2031 lost about a penny and a half. Total natural gas demand has dropped from its 7-day high point set on Monday, but remains 4.2 Bcf/d higher than year-ago levels. On the other side of the supply/demand equation, production has fallen off slightly after holding at its all-time high of 90.9 for three days straight, but still remaining 8.0 Bcf/d higher year over year. Looking ahead, tomorrow’s EIA storage report is expected to report an injection higher than both last year and the 5-year average.

Market Update081419

Market Settles 081319