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Daily Market Update September 4, 2020

Early Morning Update

The Oct20 natural gas contract is trading up $0.02 at $2.51.  The Oct20 crude oil contract is up $0.03 at $41.40. 

Summary

The NYMEX prompt month contract finished nearly flat yesterday to close the day at $2.487.  The market seems to have stalled around $2.50 recently as maybe the market has found a temporary resistance level.  The EIA reported a build into storage of 35 Bcf, in-line with expectations.  The report was well below last year (77) and the 5-year average (66).  The  estimates for the next 3 weeks are +67, +40, +54 and while larger that this past week, are all lower than last year and the 5-year average as demand for gas has been high for power generation and supply has slipped due to lower production and lower rig counts.  Injections should be higher for the next few weeks after that assuming production doesn’t slip further because weather will moderate and demand for power generation should fall. 

On the power side, short-term prices for California are set to be very high this weekend as temperatures soar.  The potential for blackouts exists due to extreme conditions.

Market Update090420

Market Settles 090320

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