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Daily Market Update June 21, 2019

Early Morning Update

The Jul19 natural gas contract is trading up $0.01 at $2.19.  The Aug19 crude oil contract is up $0.18 at $57.25.

  

Summary

For a second day in a row, the July NYMEX gas contract set a fresh all-time low, falling over nine cents yesterday to settle at $2.185/MMBtu, after the U.S. Energy Information Administration reported, yet, another extremely bearish storage injection for the week to June 14. Before the storage data was released, market estimates ranged from 96 to 115 Bcf, with a consensus at 104 Bcf. The EIA’s report shows natural gas storage inventories grew by 115 Bcf during the reporting week, and gas prices tumbled in reaction. The build was 20 Bcf greater than the injection seen last year for the corresponding week, and beat the five-year average by 31 Bcf. Mild temperatures leading up to summer have helped put a lid on energy prices, with strong production adding to the downward pressure. Thursday’s bearishness was spread across the entire front of the pricing curve, as every month through Nov ‘20 lost at least five cents, and the 2020 calendar strip hit a new record low for the third straight day. With normal weather expected for most of the country through the first week of July, demand is forecast to be relatively flat for the next two weeks, with market bearishness to continue.

 

Market Update062119

Market Settles 062019

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