Daily Market Update August 13, 2020
Early Morning Update
The Sep20 natural gas contract is trading flat to yesterday’s close at $2.15. The Sep20 crude oil contract is up $0.03 at $42.70.
Summary
Mostly flat natural gas prices have found support in the sustained late-July demand rally and a motionless supply outlook. Price movement throughout yesterday’s trading session was a mixed bag of slight gains and losses, a welcoming post-rally sign for consumers. The September and October contracts both lost nearly $0.02/MMBtu, while contracts well into the future shuffled less than $0.01/MMBtu in either direction. The market could potentially limbo over the next few weeks, as the approaching shoulder-season and strong regionalized storage levels may slightly counterbalance the uptick in LNG exports and the weakened supply outlook heading into winter. Today’s injection report from the U.S. Energy Information Administration for the week ending August 7th has a wide-range of estimates, with a consensus of 51 Bcf. A 51 Bcf injection would be 16% higher than the five-year average and 18 Bcf higher than the injection for the week ending July 31st.
Loading please wait...