Daily Market Update July 02, 2021
Early Morning Update
The Aug ‘21 natural gas contract is trading down $0.02 at $3.64. The Aug ‘21 crude oil contract is down $0.20 at $75.03.
Summary
The market for NYMEX natural gas had a volatile Thursday as it opened with a continuation of the bullish trend, but was promptly knocked back and forth with the added information from the EIA storage report. At its highest, the August prompt month contract reached $0.08/MMBtu in the positive, but fell down to a negative $0.035/MMBtu directly following the 10:30 EST report. However, continued bullish pressure, exacerbated by total US Supply falling the last two days triumphed over the very bearish 76Bcf injection report (69Bcf forecast). The US supply has been impacted by a couple new factors, including a reduction in Canadian imports due to their own heatwave while dry production fell in the US down to 85.6Bcf/d. Regarding the US production, a major reason for this decline was due to TCO pipeline in the northeast seeing its own drop in production by over 2Bcf/d, which will last an "unknown amount of time."
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