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Daily Market Update August 03, 2021

Early Morning Update

The Sep ‘21 natural gas contract is trading up $0.03 at $3.96.  The Sep ‘21 crude oil contract is down $1.96 at $69.30.

Summary

There has been continued volatility in the natural gas market, as all strips have moved up once again, but current prices for the new prompt month are trading just below the $4.00/MMBtu line after settling at $3.935/MMBtu yesterday. Interestingly, the 2023 calendar strip is starting to separate from ’24 and ’25 and move upwards as that term period approaches. While prices for 2023-2025 had been staying within a range of four cents per MMBtu of each other, current prices have 2023 about $0.20/MMBtu above 2024 and $0.24/MMBtu above 2025. This effectively means that 2023 is showing more volatility as the remaining trading time decreases. Currently, the market demand is going to be affected by where weather goes in the short term, and weather currently appears to be fairly normal or cool for the season. As a result, power burn has also decreased by nearly 5.0 Bcf/d over the last week to just 38.2 Bcf/d for the start of the new month. With little change to temperatures over the next week, it is unlikely to shift too much until climate changes and increases forecasted demand to around 43 Bcf/d. The current supply-demand balance has allowed for a potentially larger storage injection than normal to be reported this week.

 

Market Update 08 03 2021

Market Settles 08 02 2021

 

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