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Daily Market Update October 26, 2020

Early Morning Update

The Nov ‘20 natural gas contract is trading up $0.04 at $3.01. The Dec ‘20 crude oil contract is down $1.10 at $38.75.

Summary

On Friday, the Nov ‘20 NYMEX natural gas futures price dipped 3.6 cents on the day to settle at $2.971/MMBtu. Last week, Cal ‘21 felt significant upward pressure, as concerns for this winter mount. The calendar year reached a four-year high, with significant increases to not only the upcoming winter, but the shoulder seasons and summer of next year, as well. Supply remains a concern, as demand is expected to continue to climb. U.S. dry production remains down about 9% since the record last November, averaging just under 87.0 Bcf/d so far this month. LNG exports have been recovering, creeping closer to the highs set earlier this year, and the export demand outlook for this winter shows that we may reach a new record. Res/Comm demand is expected to see an uptick over the next couple of weeks, as colder-than-normal temperatures are forecasted to spread from the middle of the country into the Northeast. The cooler forecasts could mean early heating demand. Hurricane season is not over yet, as, once again, we are tracking another storm in the Gulf. Tropical Storm Zeta is moving northwest towards the Yucatan Peninsula, and is expected to make U.S. landfall in eastern Louisiana late Wednesday.

 

Market Update 10 26 2020

Market Settles 10 23 2020

 

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