Daily Market Update October 28, 2019
Early Morning Update
The Nov19 natural gas contract is trading up $0.08 at $2.38. The Dec19 crude oil contract is up $0.04 at $56.70.
Summary
On Friday, the November 2019 NYMEX natural gas futures price eased a bit, falling just 1.6 cents on the day to settle at $2.300/MMBtu. This followed a not-so-impressive storage injection of 87 Bcf, which was the lowest injection reported so far this month, but still higher than historical averages. Temperatures moderated over the weekend, leading to lower demand for natural gas. Significantly warmer-than-normal temperatures blanket the East Coast from a strong southerly flow through this Thursday. However, the other two thirds of the U.S. to the West is forecasted to see the complete opposite, with temperatures as much as 25 degrees below the 30 year normal this week. U.S. dry production is averaging just over 91.0 Bcf/d so far this month, reaching a fresh all time high of 92.6 Bcf/d on Sunday. The Northeast production continues to be the main contributor to these record highs, reaching just over 33.0 Bcf/d this weekend. Even though rig counts continue to fall and this low price environment continues, production remains at record levels.
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