Daily Market Update August 16, 2021
Early Morning Update
The Sep ‘21 natural gas contract is trading up $0.04 at $3.90. The Sep ‘21 crude oil contract is down $1.94 at $66.50.
Summary
As a new week begins, the market is greeted with an eventful weekend, ranging from the Taliban toppling the Afghan government, a developing humanitarian crisis in Haiti, to hurricane season heating up in the Atlantic. Starting with Afghanistan, world leaders are watching as international citizens wait to transport out of the country and urging peace with the Taliban back in control. Currently, global equities & commodities are not indicating a sell-off from the events, so this likely will become a long-term global risk if the region becomes further destabilized. In Haiti, there is a full-on humanitarian crisis on display where a 7.2 magnitude earthquake struck a rural section of the island nation on Saturday. Details continue to be scarce, but over 1,200 people are reported dead with thousands more still in danger from aftershocks, as aid groups flock to the region to provide support before tropical storm Grace impacts the region. Finally, on U.S. soil, tropical storm Fred is scheduled to make landfall later today around Panama City, FL with winds around 50 mph, but primarily this will be a rainmaker. It likely will have minimal impact to Gulf production.It will be interesting to watch through the week if any of these events impact commodities pricing, but they provide a reminder that geo-political & humanitarian risks can rise up at any time.
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