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Daily Market Update November 3, 2020

Early Morning Update

The Dec20 natural gas contract is trading down $0.11 at $3.14. The Dec20 crude oil contract is up $1.29 at $38.10.

Summary

Yesterday saw some near-term relief in NYMEX winter pricing, as Dec ‘20 through Mar ‘21 lost an average of $0.088, most notably with the December prompt contract losing 11 cents to close at $3.244/MMBtu, and January losing 9.4 cents, closing at $3.375/MMBtu. The 12-month strip lost 3.2 cents, closing the day at $3.126, and Cal ‘21 lost 2.3 cents, closing at $3.128. LNG exports have suffered over the last several months between cancelled cargoes worldwide due to COVID, low competitive natural gas prices in the Asian markets, and production challenges due to the hurricanes. But those exports showed a promising rebound in the last few weeks, and hit a new record of 10.37 Bcf/d on Oct. 31. Freeport LNG in Texas recently exported its 100th cargo since its start 11 months ago. More U.S. LNG cargoes are expected to target the Asian markets, as natural gas prices on the Japan-Korea Marker (JKM) are up substantially from an historic low of $1.825/MMBtu on April 28, currently around $6.80, although down a bit from recent highs above $7.00. U.S. LNG exports are expected to hover in the range of 10-11 Bcf/d until May ’21, when a new train at Cheniere’s Corpus Christi plant is slated to come online.

 

Market Update 11 03 2020

Market Settles 11 02 2020

 

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