Daily Market Update August 25, 2021
Early Morning Update
The Sep ‘21 natural gas contract is trading up $0.01 at $3.90. The Oct ‘21 crude oil contract is up $0.56 at $68.10.
Summary
NYMEX natural gas traded down during yesterday’s trading session following the upward movement on Monday, with the September prompt month contract dropping just shy of five cents lower to $3.896/MMBtu. Much of the movement was contained to the near term as the winter strip fell three cents, and the twelve-month strip followed behind, moving two cents lower. Beyond the near term, calendar strip 2022 remained flat at $3.50, while 2023 gained about a penny and half to move to just under $3.05. There was little movement beyond 2023, and 2025 at $2.83 remains the low strip on the board, but with 2026 just a few tenths of a cent higher. On the fundamentals side, natural gas production dropped 1.6 Bcf/d from Monday to just over 90 Bcf/d yesterday, after having been above the 91 mark for much of the past week. Demand increased about 3.0 Bcf/d from Monday to Tuesday, with gains in the power burn, residential/commercial, and exports to Mexico sectors, although demand is likely to fall through the next two weeks as we move out of August and into September and, hopefully, cooler temperatures.
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