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Daily Market Update June 24, 2020

Early Morning Update

The Jul20 natural gas contract is trading down $0.005 at $1.63.  The Aug20 crude oil contract is down $0.37 at $40.00. 

Summary

For the second day this week, NYMEX natural gas has moved lower, with the prompt month contract closing down 2.7 cents at $1.637/MMBtu. The majority of the movement was in the near-term through Winter ‘21, with the balance of 2020 falling 4.4 cents, and the 12-month strip moving down four cents. Beyond the near term, the Cal ‘21 strip fell 2.6 cents and closed just below the $2.60 mark, and 2022 and 2023 both lost about a penny. There is backwardation from 2021 through 2023, and 2023 stands as the cheapest calendar strip on the board and just over a penny off of it’s all-time low of $2.34. Natural gas production for today is forecasted to be the lowest in a week, under 86.5 Bcf/d, though power burn demand levels are also lower, as normal temperatures are expected through the end of the week. The demand sector with the largest drop in the past few months, LNG exports, has been quietly moving up over the past week, showing an increase of 1.0 Bcf from last Friday to 4.6 Bcf/d. However, it is still a far cry from the peak of 9.5 Bcf/d set towards the end of this past winter. We could see this continue to rebound in the coming months should domestic pricing remain low and global demand comes back to life.

Market Update062420

Market Settles 062320

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