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Daily Market Update August 26, 2019

Early Morning Update

The Sep19 natural gas contract is trading up $0.04 at $2.19.  The Oct19 crude oil contract is up $0.73 at $54.90.

   

Summary

On Friday, the September 2019 NYMEX natural gas futures price ticked lower, moving down 0.7 cents on the day to settle at $2.152/MMBtu. The bears appear to be winning in this battle of the fundamentals when it comes to natural gas pricing. Weather forecasts moderated once again over the weekend, showing cooler-than-normal to normal temperatures for the majority of the country with the exception of the West. A major change to the forecasts compared to last week was that heat was expected to return to the Northeast, a major demand center for natural gas, through the end of the month, but has since retreated. The blanket of warmer-than-normal temps linger over mostly California into the beginning of September. The moderating temps have resulted in depressed demand for the power burn sector, but still is averaging about 3.0 Bcf/d higher than last year. Both LNG and exports to Mexico continue to climb, and are projected to continue to grow through the end of this year. U.S. dry production remains just over 90 Bcf/d, just slightly below its recently set all-time high.

Market Update082619

Market Settles 082319

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