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Daily Market Update October 30, 2020

Early Morning Update

The Dec20 natural gas contract is trading down $0.02 at $3.28. The Dec20 crude oil contract is down $0.05 at $36.12.

Summary

Another volatile day as the NYMEX traded in a wide range before ultimately settling nearly flat, up just $.01 to close at $3.301. The prompt month traded at low at $3.15 as weather forecasts show warmer than average temps along the east coast into the 2nd week of November, perhaps delaying the start to cold winter weather. But the EIA reported a smaller than expected build into storage of just 29 Bcf, below the estimates in the high 30;s. The market rallied on the news and finished the day nearly flat. We’re also seeing index markets creep up. PJM markets had been in the $20’s for most of 2020 but now are hovering in the low $30-range. NEPOOL pricing nearly hit $60 for today as colder temps are forecast there through this weekend, before warming up next week. It’s a reminder that winter risk remains despite the recent low-priced winters over the past 2 years. The NG supply in the US is considerably lower this year compared to last year and very cold temps will almost certainly cause price spikes this year - something we haven’t seen in a long time.

 

Market Update 10 30 2020

Market Settles 10 29 2020

 

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