Daily Market Update October 1, 2019
Early Morning Update
The Nov19 natural gas contract is trading down $0.01 at $2.32. The Nov19 crude oil contract is up $0.53 at $54.60.
Summary
The bearish trend continued during yesterday’s natural gas trading activity, as each monthly contract within the 12-month strip weakened at least two cents. The biggest loser of the bunch was the November contract, which opened up at $2.40 and lost over seven cents by closing time, eventually settling at $2.33/MMBtu. The Dec-Feb winter strip slid nearly six cents, as well. This market weakness at the front of the curve is most likely due to the lagging summertime warmth, which was bullish just a few weeks ago. However, the lingering warmth shrinks the high and low temperature ranges around this time of the year, and allows storage to build at a faster pace. Forecasts for the next 20 days call for more of this weather pattern, leading the market to believe we could see further selloffs as the week progresses.
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