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Daily Market Update October 6, 2020

Early Morning Update

The Nov20 natural gas contract is trading up $0.01 at $2.62. The Nov20 crude oil contract is up $1.03 at $40.25.

Summary

After declining $0.37 last week, the Nov ‘20 NYMEX natural gas contract gained a good chunk of that back in a single trading session yesterday, settling at $2.615/MMBtu, up almost 18 cents on the day. The entire front on the NYNEX curve made significant gains yesterday, with Dec ‘20 up 17 cents, Cal ‘21 rising eight cents, and Q1-22 four cents higher. Bucking the trend, all of the calendar strips beyond 2021 declined slightly. U.S. dry production had been maintaining levels slightly above 87 Bcf/d for the past week, but is projected to drop to 85.2 Bcf/d today, with most of the decline seen in the Southeast producing region. Imports from Canada are down 0.5 Bcf/d today, reflecting the overall drop in U.S. demand for natural gas. Demand in the res/comm sector fell 4.0 Bcf/d since yesterday, while industrial demand is down 0.6 Bcf/d. The overall day-over-day domestic demand loss amounted to 3.2 Bcf/d, as power burn demand increased by 1.5 Bcf/d. Mexican exports are close to all-time highs at just under 6.0 Bcf/d, while feedgas for LNG exports is hovering just under 8.0 Bcf/d. With the return of Cameron LNG later this month, LNG exports are expected to set a new high.

 

Market Update 10 06 2020

Market Settles 10 05 2020

 

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