Daily Market Update October 3, 2019
Early Morning Update
The Nov19 natural gas contract is trading down $0.01 at $2.23. The Nov19 crude oil contract is down $0.74 at $51.90.
Summary
Natural gas prices extended their decline yesterday, as the NYMEX prompt month contract fell another 3.6 cents, settling at $2.247/MMBtu. The 12-month strip and calendar 2020 each lost less than two cents, with 2021-2022 closing nearly flat against the prior day’s close, and the 2023-2025 strips gaining just under two cents. A respite from the lingering above-normal temperatures is on the horizon for the East & Midwest, before slightly-above-average temperatures return by next weekend. ERCOT weather looks to be following a similar trend. Today’s storage expectation is a healthy 106 Bcf, which, combined with the delayed start to cooler weather, should continue to leave us within easy range of beating the 5-year average before withdrawal season begins. The latest end-of-season storage projection is 3.8 Tcf, about 70 Bcf more than the 5-year average.
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