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Daily Market Update October 29, 2020

Early Morning Update

The Dec20 natural gas contract is trading down $0.08 at $3.21. The Dec20 crude oil contract is down $1.79 at $35.60.

Summary

The November NYMEX natural gas contract expired yesterday, just one penny shy of $3.00 at $2.99, which is close to where it's been trading over the past several days. The December prompt month debuted well over $3 at $3.29, down two cents day-over-day. The remaining Dec-Mar '21 winter strip lost a penny, on average, and forward calendar strips ‘21-'23 remained flat. All eyes continue to be on Zeta, as she made landfall yesterday afternoon across southeastern Louisiana as a Category 2 hurricane with 110 mph winds. This is the fifth hurricane or tropical storm to hit Louisiana this year, and, in total, 27 storms have formed across the Atlantic in 2020. The abundance of storms this year has made the National Hurricane Center resort to the Greek alphabet to designate new names. Back-to-back battering of storms has led to even more uncertainty in the market from oil and gas shut-ins, in addition to infrastructure damage. While NG storage levels continue to operate at a surplus to last year, injections have slowed down, and forecasts are showing the potential to exit winter at a deficit to last year if we experience a cold winter. The EIA will be releasing their weekly storage report today, where the market is expecting an injection of around 37 Bcf to be reported, nearly half the amount of the 5-year average.

 

Market Update 10 29 2020

Market Settles 10 28 2020

 

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