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Daily Market Update August 7, 2020

Early Morning Update

The Sep20 natural gas contract is trading up $0.04 at $2.20.  The Sep20 crude oil contract is down $0.54 at $41.41. 

Summary

The NYMEX NG prompt month contract bounced around yesterday, trading within a fairly wide range before ultimately settling down $0.026 to close at $2.165.  This has been a wild week on the NYMEX with the prompt month contract trading up nearly $0.40 on the week.  Higher industrial demand, higher exports, hotter temps, low rig counts and speculative/technical trading all helped push the market higher this week. 

The EIA yesterday reported a build into storage of 33 Bcf, slightly above estimates.  Storage levels remain well above last years’ level and on-track to end the injection season around 4.0 Tcf.  The market is still somewhat concerned that production could slow just as demand picks up through a recovering economy and heating demand, so pricing for the first quarter of 2021 could see more volatility.

On the power side, index prices remain very low as the milder weather this week has kept demand down.  Next week is showing higher demand levels but index pricing so far this summer has failed to materialize, even through a near-record summer-to-date

Market Update080720

Market Settles 080620

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