Daily Market Update August 11, 2021
Early Morning Update
The Sep ‘21 natural gas contract is trading down $0.05 at $4.04. The Sep ‘21 crude oil contract is down $0.69 at $67.60.
Summary
NYMEX natural gas pricing inched up during yesterday’s trading session following the drop on Monday, with the September prompt month contract gaining just under three cents to close at $4.089/MMBtu. Both the winter strip and the twelve-month strip gained 2.6 cents, while the front calendar strip for 2022 gained 2.5 cents to move to $3.58/MMBtu. The upward movement continued to 2023, which gained just a penny to close at $3.05/MMBtu. The lowest priced strip on the board remains 2026 at just under $2.75. On the fundamentals side, natural gas production has increased by just over half a Bcf/d over the past week (91.3 Bcf/d) compared to the prior week (90.7 Bcf/d). Demand over the same timeframe has remained fairly unchanged, with power burn holding at 39.6 Bcf/d, and total exports shifting down slightly to 16.5 from 16.8 Bcf/d with lower LNG feedgas being the culprit. The heat in the forecast through the Northeast is pushing up electricity demand, and both PJM and NYISO are projected to peak tomorrow.
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