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Daily Market Update May 13, 2019

Early Morning Update

The Jun19 natural gas contract is trading down $0.01 at $2.61.  The Jun19 crude oil contract is up $0.94 at $62.60. 

 

Summary

On Friday, the June 2019 NYMEX natural gas futures price pushed slightly higher, up 2.4 cents on the day to settle at $2.619. The remaining months of this year also saw a slight uptick to prices. Total U.S. dry production continues to holds strong, averaging just over 86 Bcf/d, and is about 8.0 Bcf/d higher than this time last year. Steady production has helped close the deficit to historical benchmarks, coupled with diminished demand for this time of the year. Exports to Mexico and LNG remain steady, as well, just over 4.0 Bcf/d higher than in 2018, and are expected to continue to climb through the end of this year. Cameron LNG train 1 is forecast to start ramping up this week, estimated to be in service in June. Another project with an expected June start is the Sur de Texas pipeline (2.6 Bcf/d capacity) bringing supply to downstream demand in Mexico. Weather forecasts have warmed over the weekend for the East, Midwest, and Texas. In the 6-10 day outlook, cooler-than-normal temperatures creep into the western half of the country, while the East remains slightly above normal. It seems the warmer temps will remain along the East Coast through the end of this month, which could put upward pressure on natural gas prices if the heat continues into June.

 

Market Update 051319

Market Settles 051019

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