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Daily Market Update August 02, 2021

Early Morning Update

The Sep ‘21 natural gas contract is trading up $0.09 at $4.00  The Sep ‘21 crude oil contract is down $0.86 at $73.09.

Summary

On Friday, NYMEX prices did give back some gains as the month wrapped up with the prompt month (September 2021) closing down 14.5 cents to close at $3.914/MMBtu after nearly trading above $4 for nearly the entire week.  Cooler summer temperatures seem to be the main culprit as power burns decreased as below normal temperatures moved in for the weekend in the eastern US.  In a July lookback, NYMEX prices steadily marched higher throughout the month – notably Cals 2022 and 2023.  Both forward years rose 36 and 16 cents respectively to trade at $3.50/MMBtu and $2.95/MMBtu.  These prices represent some rare air with Cal 2022 trading at nearly a 6 year high (Oct 2015) and 3 ½ year high for Cal 2023 (Feb 2018).  Once beyond these years, NYMEX prices stabilized as Cals 2024 – Cal 2027 all traded flat and within a few pennies of $2.75/MMBtu.  The month will be remembered for how quickly the market reacted to a number of bullish fundamentals coming together with a strong US economic reopening creating demand, favorable global LNG prices and natural gas supply not keeping pace with demand.  As these trends continue to materialize through the rest of summer, we’ll see if this price rally will continue or if Friday’s drop was the beginning of a market fizzle.

 

Market Update 08 02 2021

Market Settles 07 30 2021

 

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