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Daily Market Update May 11, 2020

Early Morning Update

The Jun20 natural gas contract is trading up $0.06 at $1.88.  The Jun20 crude oil contract is up $0.16 at $24.90. 

Summary

On Friday, the June 2020 NYMEX natural gas futures price slumped 7.1 cents on the day to settle at $1.823/MMBtu. The prompt month was rangebound throughout the day between $1.811/MMBtu and $1.927/MMBtu. Colder-than-normal temps blanketed the eastern half of the country over the weekend, causing an uptick in demand levels, but could be short-lived as temperatures are expected to increase. The 1-5 day forecast shows the colder temperatures covering the eastern half of the country into the Great Lakes region. The weather takes a turn around the 16th of the month, showing warmer-than-normal temperatures covering the majority of the U.S., which could lead to an early start of cooling demand. The managed money community extended their net long positions, and seem to be changing their focus to the first quarter of 2021. LNG and exports to Mexico remain lower due to the effects of COVID-19, causing load curtailments, as well as a dip in global LNG pricing, making U.S. pricing higher for the first time. U.S. dry production is lower, averaging just over 89.0 Bcf/d so far this month, which is about the same level as last year at this time.

Market Update051120

Market Settles 050820

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