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Daily Market Update May 9, 2019

Early Morning Update

The Jun19 natural gas contract is trading down $0.03 at $2.58.  The Jun19 crude oil contract is down $0.32 at $61.80. 

 

Summary

With U.S. dry production stumbling and demand for natural gas on the rise, the prompt month gained 7.3 cents yesterday, settling at $2.61/MMBtu. The front of the NYMEX curve rose yesterday, with calendar strip 2020 up three cents and 2021 up less than a penny. However, everything beyond 2021 lost ground, but only slightly. Production is stagnant day-over-day at 86.3 Bcf/d, but down about 0.7 Bcf/d from a week ago. Meanwhile, U.S. demand has been steadily rising this week to 67.9 Bcf/d, up 4.0 Bcf/d since the weekend. The U.S. Energy Information Administration is expected to release the eighth bearish storage report in a row relative to the five-year average. A survey of market analysts points to an 86 Bcf growth in storage stockpiles in the week to May 3. This would continue the strong start to storage replenishment as we near summer, when injections usually taper off. An 86 Bcf build is right in line with last year’s injection for the corresponding week, but a little higher than the 72 Bcf five-year average, helping to cut the deficit to the historical benchmark even further.

 

Market Update 050919

Market Settles 050819

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