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Daily Market Update June 10, 2020

Early Morning Update

The Jul20 natural gas contract is trading down $0.01 at $1.75. The Jul20 crude oil contract is down $0.76 at $38.18. 

Summary

NYMEX was mixed yesterday with the near term trending down while the further out calendar strips inched higher. The prompt month July contract moved down 2.2 cents to close at $1.767/MMBtu with the balance of the months in 2020 following closely behind as they lost an average of 2.1 cents. Outside of the near term, the market was largely flat with the twelve month strip and calendar strips 2021 through 2026 all moving less than a penny. The market is still in a backwardated state with pricing for 2021 ($2.635) being the highest on the board until 2031. The forward calendar strips are also trading in a very narrow range of just 1.8 cents from 2023 to 2037. Production is projected to drop below 86 Bcf/d today, down to 85.9, which would represent a slight downward trend over the past 8 days. Demand is also off today with the majority of the drop in the power burn sector (down 2.9 Bcf/d) as the balmy temps yesterday are being replaced with cooler temps from Texas to the Northeast.

Market Update061020

Market Settles 060920

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