Daily Market Update November 2, 2020
Early Morning Update
The Dec20 natural gas contract is trading down $0.09 at $3.26. The Dec20 crude oil contract is down $0.09 at $35.70.
Summary
Uncertainty is the best way to describe last week, with COVID continuing to impact the global economy and the final sprint in the U.S. presidential election. Cases have surged around the world, creating a number of notable milestones, including lockdowns across Europe, eight million confirmed cases in India, and a new U.S. daily confirmed case count record of 99,000 on Friday. The uncertainty finally hit U.S. equity markets, with the Dow, Nasdaq, and S&P all down over 5% after weeks of trading sideways. The energy complex has not been immune, as oil prices hit a 5-month low, trading under $40/bbl, while natural gas continues its climb, with the Cal ‘21 strip rising 27 cents (9%) over the past 30 days to settle Friday at $3.13/MMBtu. Rollercoaster U.S. temperatures are expected in the near-term outlook. After many Midwest and Northeast cities seeing the first snowflakes of the year this weekend, we’ll see a rapid temperature moderation this week, where highs will top out in the mid-60s by next weekend. We’d be remiss not to acknowledge tomorrow’s election. While we may not know the results immediately, the result should bring some certainty to the market around national policy. As a public service announcement, go vote tomorrow!.
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