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Daily Market Update July 30, 2020

Early Morning Update

The Sep20 natural gas contract is trading down $0.02 at $1.91.  The Sep20 crude oil contract is down $0.67 at $40.60. 

Summary

The near and medium-term NYMEX contracts continued to strengthen yesterday amidst tightened supply and demand fundamentals. While gas supply has begun to crawl towards recovery, gas demand in the industrial and power burn sectors raced past supply’s forward progress over the last week. Specifically, supply’s 1.0 Bcf/d gain was modest in comparison to the nearly 5.0 Bcf/d combined demand growth from record-setting power burn levels and increased industrial activity. The August contract expired $0.05/MMBtu higher yesterday than the previous day’s settle at $1.854/MMBtu, up $0.20/MMBtu from the lows of late June. The September - December contracts showed similar strength, settling up $0.07/MMBtu day-over-day at a two-month high of $2.36/MMBtu. The next few calendar strips showed modest gains as well, most-likely reacting to concerns of supply reliability, declining rig counts, and the erosion of the storage surplus. Today’s storage report is expected to fall between 20-30 Bcf, a range well below the 63 Bcf 5-year average, in-line with the trend from the last few weeks.

Market Update073020

Market Settles 072920

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