Direct Energy Business
Market Data For Your Home Contact Us
Market Updates

Daily Market Update June 18, 2020

Early Morning Update

The Jul20 natural gas contract is trading down $0.02 at $1.62.  The Jul20 crude oil contract is up $0.14 at $38.10.

Summary

The July natural gas contract’s losing streak, which lasted five trading sessions, was stopped short as of yesterday’s market close. After settling at $1.81/MMBtu on Thursday, July 11, and tumbling nearly $0.20/MMBtu through Thursday, the 16th, as well as hitting a 20-year low along the way, the prompt month strengthened by 2.4 cents on Wednesday and settled at $1.638/MMBtu. Record-setting demand from gas-fired generation may likely be the cause of the bullish move, as low prices and above-normal temperatures are expected to drive cooling load much higher through July and August. States reconsidering their plans to mobilize upon news of localized COVID-19 outbreaks may further boost residential cooling load over the next few weeks. The extent of a bullish rally, however, may be capped, as natural gas storage is currently 120% of the five-year average. Today’s storage report from the U.S. Energy Information Administration is expected to fall within the injection range of 82-88 Bcf/d, in line with the five-year average.

Market Update061820

Market Settles 061720

18.206.177.17