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Daily Market Update July 13, 2020

Early Morning Update

The Aug20 natural gas contract is trading flat to Friday’s close at $1.81.  The Aug20 crude oil contract is down $0.35 at $40.20.

Summary

On Friday, the August 2020 NYMEX natural gas futures price moved up 2.6 cents on the day to settle at $1.805/MMBtu. The small increase follows the prior days bullish storage injection report and continues the upward trend seen over the past two weeks, about a 4% increase week-over-week. Weather forecasts remain bullish, showing warmer-than-normal temps creeping into Texas this week, and a blanket of heat covering the Northeast, a major demand center for natural gas, through the end of the month. Coupled with the heat, power burn levels remain very close to record-setting levels, despite demand depression due to the effects of the pandemic. Rig counts continue to fall, showing a decrease of five rigs, bringing the total down to 258 rigs according to the Baker Hughes rig count report. Storage levels, as of now, are projected to end the season at 3.985 Tcf, very healthy levels heading into next winter. So far this month, U.S. dry production is averaging just over 87.0 Bcf/d, slightly higher versus last month, despite the rig count declines.

Market Update071320

Market Settles 071020

 

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