Daily Market Update October 8, 2019
Early Morning Update
The Nov19 natural gas contract is trading flat to yesterday’s close at $2.30. The Nov19 crude oil contract is down $0.65 at $52.10.
Summary
The natural gas market appears to be looking for some direction, as Henry Hub prices fell, yet again, during yesterday’s trading activity. After gaining about seven cents last week, the prompt month contract lost five cents from Friday’s close and settled at $2.303/MMBtu. We’re now near the pre-Sept rally levels, which peaked at $2.72 on September 16th. Strong production and mild temperatures continue to be the main factors driving the downward pressure on prices. However, this trend could reverse once again, as the low pricing environment is presenting a pre-winter buying opportunity. The Dec-Feb strip is currently trading around $2.55, only 10 cents above the low for the strip that was established in mid-August. This strip traded as high as $3.20 back in March.
Loading please wait...