Daily Market Update October 29, 2019
Early Morning Update
The Nov19 natural gas contract is trading up $0.12 at $2.56. The Dec19 crude oil contract is down $0.71 at $55.10.
Summary
Record cold in the Rockies and most of the Great Plains caused residential heating demand to surge 6.0 Bcf/d on Monday, hitting 75.3 Bcf/d. Demand in this region could remain elevated for at least the next week, as the weather forecast is expected to change very little. As a result of the increased demand, the NYMEX prompt contract posted its largest day-over-day gain since last winter and rallied nearly 15 cents yesterday, settling at $2.446/MMBtu. Current pricing for November is now in the middle of the trading range since June - the high of $2.73 was reached on Sept 16th, and the low was established at $2.17 on August 5th. The rest of the Dec-Feb winter contract climbed significantly, as well, gaining about nine cents and settling at $2.60. Supply continues to remain very high, hovering around the 92.6 Bcf/d record that was established on Oct 27.
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