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Daily Market Update October 25, 2019

Early Morning Update

The Nov19 natural gas contract is trading down $0.03 at $2.28.  The Dec19 crude oil contract is down $0.15 at $56.08.

  

Summary

An in-line storage report nevertheless led to an increase in NYMEX NG prices as the prompt month settled higher by $.034 to close the day at $2.316.  The build of 87 Bcf leaves us with a surplus of 28 to the 5-year average and a whopping 519 bcf to last year.  Weather forecasts currently show significantly below-average temperatures in the mid-con area, leading to higher heating demand in those regions.  However, critically, the northeast is not seeing colder-than-normal temperatures.  The northeast has an outsize impact on overall national gas demand due to the potential for extreme cold and the population density in that area.  The longer that cold is delayed in the northeast, the better for storage.  But the mid-con cold is having an effect on pricing there as basis and power markets move higher. 

Market Update102519

Market Settles 102419

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