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Daily Market Update July 29, 2021

Early Morning Update

The Sep ‘21 natural gas contract is trading down $0.03 at $3.94  The Sep ‘21 crude oil contract is up $0.21 at $72.60.

Summary

Natural gas prices climbed higher once again during Wednesday's trading session as bullish fundamentals remain unchanged and unopposed. The 12- and 24-month strips each increased by about $0.030/MMBtu day-over-day, and most of the strength within these terms was weighted towards the front two contracts. The August contract rolled off the trading board yesterday, closing up $0.073 to $4.044/MMBtu. This settlement price is just $0.060 shy of the contract's $4.102 all-time high, seen this past Monday. The September contract, which debuts as the new prompt month today, also finished stronger, gaining $0.025 and ending the day at $3.967/MMBtu. Bearish fundamentals seem distant as robust demand levels are expected to pull the market further out of balance for the next few weeks. Production remains below pre-pandemic highs amidst soaring demand for LNG in Europe and Asia. Last week's heat wave in the Midwest slightly bolstered gas-fired cooling demand, further impacting the currently weakened storage levels. Today's EIA inventory report for the week ended July 23 is expected to show a build somewhere around 40 Bcf. While an injection at this level would be higher than the five-year-average, it may not be enough to have a material effect on the market.

 

Market Update 07 29 2021

Market Settles 07 28 2021

 

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