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Daily Market Update September 25, 2020

Early Morning Update

The Oct20 natural gas contract is trading down $0.03 at $2.21. The Nov20 crude oil contract is down $0.37 at $39.94.

Summary

Another day for the bulls as the prompt month traded higher by $.123 to close the day at $2.248. Over the past week, the prompt month has traded from $2.048, down to $1.834 and back up to yesterdays’ close. Volatility has definitely returned as we turn the corner and head towards winter. The market is alternately concerned and relieved by steady production, growing LNG demand, low rig counts, mild weather and other conflicting data. Winter weather forecasts will start to be published over the next few weeks, which may bring some clarity and direction to the market. Direct Energy will publish our winter outlook on October 15, with a webinar to follow.

But while we’re seeing volatility at the front of the NYMEX curve, longer term NYMEX as well as power index and power term pricing remains stable. Index pricing in the east in particular is low and steady. But the market definitely has a ‘calm before the storm’ feel as winter demand is a bigger question mark than in recent years.

 

Market Update 09 25 2020

Market Settles 09 24 2020

 

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