Direct Energy Business
Market Data For Your Home Contact Us
Market Updates

Daily Market Update August 27, 2020

Early Morning Update

The Sep20 natural gas contract is trading up $0.05 at $2.51.  The Oct20 crude oil contract is down $0.14 at $43.25.

Summary

Short-term oil and natural gas prices both weakened yesterday amid hurricane-related disruptions in supply and demand. Calls for mass evacuations from counties within Hurricane Laura's landfall zone, encompassing the TX/LA border, were extended to include offshore rig operators. About 84% of offshore oil production, roughly 1.6 billion bbl/d, which is 15% of total domestic oil production, was shut in as of last night. WTI futures for the months of Oct ‘21-April ‘21 are each down about $0.25 day-over-day. Natural gas production and prices were less impacted, as only 61% of offshore production, equating to roughly 1.7 Bcf/d, was taken offline. The natural gas 12-month strip only slid about $0.02/MMBtu during yesterday's trading session. Hurricane Laura is expected to move beyond the Gulf producing region by this afternoon, just in time for this week’s storage report. Estimates for the week ending August 21st are falling within the narrow range of 39-58 Bcf, well below the five-year average. This bullish fundamental may be slightly offset over the next week, as post-Laura productions should begin to normalize in a few days.

Market Update082720

Market Settles 082620

34.200.252.156