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Daily Market Update July 31, 2020

Early Morning Update

The Sep20 natural gas contract is trading up $0.02 at $1.85.  The Sep20 crude oil contract is up $0.47 at $40.39. 

Summary

The prompt NG contract slipped yesterday and fell $.101 to close at $1.829.  The drop came after two weeks of a slow grind higher as demand for gas for power generation was very high as air conditioners were running flat-out.  With weather forecasts moderating and the price of prompt gas approaching $2, the market took the opportunity to sell-off.  Long-term NG remained elevated as concerns over higher demand due to the Ohio nuclear bailout issue continues.  Due to the potential repeal of the bailout, the market is concerned about higher demand from gas-fired power plants in Ohio

On the power side, index prices remain low across the country, despite high demand levels as temps were elevated nearly everywhere.  Forward prices for PJM markets have been ticking higher though as the Ohio nuclear bailout issue continues to cause uncertainty.  Texas pricing has been moving down though as the its grid has performed very well so far this year.  The summer is not over but so far, so good.

Market Update073120

Market Settles 073020

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