Daily Market Update September 9, 2020
Early Morning Update
The Oct20 natural gas contract is trading up $0.06 at $2.46. The Oct20 crude oil contract is up $0.44 at $37.20.
Summary
Yesterday, the NYMEX natural gas prompt month contract lost a whopping $0.188/MMBtu (7.3%), opening the day at $2.588/MMBtu and closing at $2.400/MMBtu. Part of the drop could be due to a possible correction from this past Friday, which saw prices run up ten cents just before the holiday weekend. Temperatures are plunging in the Rockies this week, as a rare early season winter storm is brewing. This should prop heating demand in the region for at least a few days before temperatures return to normal. Production of natural gas has averaged 87.3 Bcf/day so far this month, a 6.2 Bcf/day loss vs. last year, but back to levels seen a few weeks ago. Looking ahead, tomorrow's storage report from the U.S. Energy Information Administration is expected to show an injection for the week to September 4 of about 67 Bcf, less than both last year and the 5-year average.
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