Daily Market Update September 14, 2020
Early Morning Update
The Oct20 natural gas contract is trading up $0.10 at $2.37. The Oct20 crude oil contract is down $0.33 at $37.00.
Summary
On Friday, the October 2020 NYMEX natural gas futures price continued its downward trend, falling 5.4 cents on the day to settle at $2.269/MMBtu. Demand is expected to continue to dip, as cooler temps settle in over the next couple of weeks for the eastern half of the country. It seems, however, there will be no relief for the western half of the country, which forecasts are still showing warmer-than-normal temps through the end of this month. Concerns for California remain, with wildfires, high demand, and limited supply looking like they might continue for now. Tropical Storm Sally is moving through the eastern Gulf of Mexico, with sustained winds of 60 mph, although some slowing is expected today. The storm is looking like it will make landfall near the mouth of the Mississippi River or coastal Mississippi tomorrow. Expect heavy rainfall, which could be as much as 10-20”, due to the slow movement of the storm. So far this month, U.S. dry production is averaging just over 87.5 Bcf/d, with a slight drop to production in the northeast and southeast over the weekend.
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