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Daily Market Update October 17, 2019

Early Morning Update

The Nov19 natural gas contract is trading up $0.03 at $2.33.  The Nov19 crude oil contract is down $0.36 at $53.00.

  

Summary

While NYMEX has been strengthening over the past two days, it has now changed direction, with the prompt month losing 3.6 cents and settling at $2.303/MMBtu yesterday. A similar sentiment was felt in the Nov'19-Mar'20 winter strip, which also lost 3.6 cents. Cal'20 didn't want to miss out on the bearish action either, as it lost 2.5 cents throughout yesterday's trading. The excitement fizzled out though, with Cal'21-'22 shedding less than a penny and Cal '23-'24 remaining flat. This downward movement in the front of the curve could be attributed to the preliminary winter weather forecasts that vendors have released earlier this week. Those forecasts appear to be calling for a fairly mild winter, which should keep demand low and help prices to stay low, as well. Another item that will help temper NG prices heading into this winter is our storage inventory. Later on today, the EIA will release their weekly storage report, which is estimated to close the gap to the 5-year average deficit with the week's injection. Such a large milestone as this could add even more downward pressure on NG prices, since we are now equipped with a large storage supply heading into this winter.

Market Update101719

Market Settles 101619

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