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Daily Market Update July 28, 2021

Early Morning Update

The Aug ‘21 natural gas contract is trading up $0.01 at $3.98  The Sep ‘21 crude oil contract is up $0.59 at $72.24.

Summary

Its penultimate day of trading, the Aug ‘21 NYMEX natural gas contract showed clear signs of weakening before its expiration today. The prompt month lost more than 13 cents yesterday, dropping back below the $4 technical level and settling at $3.971/MMBtu. The Sep ’21 contract, which moves into the front spot tomorrow, lost 14 cents, settling at $3.942, while the 12-mo strip was down a dime, closing Tuesday’s trading session at $3.717. Traders seem to be ignoring the warmer-than-normal temperatures forecast for much of the country for the next few days and looking beyond to the 6-10 day outlook, where below-average temperatures blanket most or the eastern half of the country. Total demand for natural gas is down over 1.0 Bcf/d today, with the biggest decline seen in the power burn sector. Gas used for electric generation is down almost 2.0 Bcf/d today, offset by slight increases in res/comm demand and exports to Mexico. Northeast power demand is expected to slide about 2.0 Bcf/d by the end of the week as cooler temperatures take hold, which should dampen regional prices through the weekend. Meanwhile, natural gas dry production has been flat between 90 and 91 Bcf/d for some time now, with little change anticipated over the next week.

 

Market Update 07 28 2021

Market Settles 07 27 2021

 

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