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Daily Market Update July 8, 2019

Early Morning Update

The Aug19 natural gas contract is trading flat to Friday’s close at $2.42.  The Aug19 crude oil contract is up $0.19 at $57.70.

 

Summary

On Friday, the August 2019 NYMEX natural gas futures price surged higher, up 12.8 cents on the day to settle at $2.418. Storage levels are now only 152 Bcf away from the five-year average benchmark, levels which, earlier in the year, were not expected to be reached. On Friday, U.S. dry production hit an all-time high of 88.8 Bcf/d, and has averaged 88.4 Bcf/d so far this month. The healthy production levels have been a significant bearish fundamental, that, so far this summer, has helped push near-term NYMEX pricing to near all-time lows and contributed to high injections into natural gas inventories. Weather outlooks have warmed up through the third week of July. The majority of the heat through the end of this month is expected to linger in the major U.S. demand centers for natural gas, the Northeast and Texas. In the 6-10 day forecast, both of those regions are showing pockets of warmer temps, which could push up power burns levels significantly. There appears to be no relief for the Northeast, with warmer-than-normal temperatures lingering through the 16-20 day outlook.

Market Update070819

Market Settles 070519

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