Daily Market Update August 8, 2019
Early Morning Update
The Sep19 natural gas contract is trading up $0.03 at $2.11. The Sep19 crude oil contract is up $1.41 at $52.50.
Summary
The NYMEX natural gas prompt month is back to record setting levels, ultimately losing 2.8 cents yesterday and settling at $2.083. The prompt month has not seen prices this low since May of 2016, and with the continued bearish fundamentals, it has folks wondering how much lower it might go. Forward calendar strips through 2023 also felt a similar sentiment, losing around a penny each. 2020 and 2021 settled at all-time lows, as well. Weather forecasts show the Northeast and Midcon as having below-normal temperatures over the next 20 days, which is helping to keep demand at bay, while on the contrary, the West and southern region of the country are predicting above normal conditions. The EIA’s storage report will be released later today, and we will learn if the anticipated above-average storage injection (57 Bcf) materializes. If it does, it will be interesting to see how much additional downward pressure it could have on NYMEX pricing. When last week’s storage report came in higher than market estimates and the 5-year average, the September prompt month reacted by losing six cents.
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