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Daily Market Update October 16, 2019

Early Morning Update

The Nov19 natural gas contract is trading up $0.02 at $2.36.  The Nov19 crude oil contract is down $0.01 at $52.80.

  

Summary

NYMEX moved up throughout the strip during yesterday’s trading session, as the Nov19 contract gained just under six cents to close at $2.339/MMBtu, and the winter strip gained 3.2 cents to close at $2.525/MMBtu. This was the second day of upward price movement for the upcoming winter that is fast approaching and the current focus of the market. The momentum carried out beyond the near-term, as calendar strip 2020 gained two cents, 2021 gained one and a half, and 2022 added a penny. Despite the recent move up, all calendar strips out to 2023 remain within five cents of their all-time low. Natural gas production set a new record on Monday at 91.7 Bcf/d, surpassing the previous record of 91.5 Bcf/d set earlier this month. Demand is also increasing to a seven-day high due to the chilly northeast weather and rising exports. The EIA natural gas storage report is expected to show a build of 110 Bcf tomorrow, which would be significantly larger than the five year average of 81 Bcf and put us into surplus territory against the five-year average mark.

Market Update101619

Market Settles 101519

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