Direct Energy Business
Market Data For Your Home Contact Us
Market Updates

Daily Market Update August 28, 2019

Early Morning Update

The Sep19 natural gas contract is trading up $0.03 at $2.23.  The Oct19 crude oil contract is up $0.92 at $55.85.

     

Summary

After gaining 7.8 cents during Monday’s session, the September 2019 contract gave back 2.8 cents yesterday, settling at $2.202/MMBtu, on it’s second-to-last day of trading. Tropical Storm Dorian likely prompted the downward pressure, as analysts believe the storm will pull Southeast demand lower over the next few days with winds and rain lowering temperatures and potentially disrupting power supply. Natural gas supplies remain stable, with production averaging 90.6 Bcf/d over the past seven days. However, the current supply/demand balance could be disrupted, with Mexico appearing to reach an agreement over the Sur De Texas pipeline. Construction on the pipeline was completed, and commissioning began in late June 2019, only to be halted by the Mexican FERC. With the potential to reach 2.6 Bcf/d capacity, providing U.S. natural gas an outlet deeper into the heart of Mexico demand centers than land export pipelines, signs of life from this pipeline will surely change the future of U.S. natural gas export demand. Today is the last day for trading the September 2019 contract.

Market Update082819

Market Settles 082719

3.234.210.89