Daily Market Update September 24, 2019
Early Morning Update
The Oct19 natural gas contract is trading up $0.01 at $2.54. The Nov19 crude oil contract is down $0.59 at $58.05.
Summary
The current heat wave that’s forecasted to continue into early October is becoming a bearish signal for future NYMEX contracts. Delays to cooling demand, coupled with sustained near-record production, has weakened the prompt month contract over the last week, and that trend continued during yesterday’s trading activity. The Oct’19 contract settled at $2.527/MMBtu yesterday, which is not quite a penny lower from Monday’s close. The rest of the contracts within the twelve month strip barely moved at all, and 2020-2022 calendar strips all experienced moves of less than a penny. Although warmer weather is dampening demand, demand from exports to Mexico is expected to pick up over the next few weeks as the Sur de Texas pipeline ramps up commercial operations towards its capacity of 2.6bcf/d.
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