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Daily Market Update June 11, 2021

Early Morning Update

The Jul ‘21 natural gas contract is trading up $0.11 at $3.26. The Jul ‘21 crude oil contract is down $0.05 at $70.24.

Summary

Despite an above average injection reported by the EIA yesterday, prices continued to move upward. Before the report, prices for the NYMEX July contract were trading at approximately $0.05/MMBTU above open but reduced down to a $0.02/MMBtu increase upon settle yesterday. Now we see continued natural gas demand increases as temperatures rise to record levels in the western half of the American continent. This heat has extended down into Mexico, creating a seasonal load that has created new record highs yesterday. Cross-border flows jumped to 7.2Bcf/d yesterday, breaking the 7.0Bcf/d level for the first time in history. A forecast for a population-weighted temperature calls for a decrease to normal over the next two weeks. However, July and August typically call for an overall warmer climate than early June, and could still create higher demand. Across all typically measured fundamental factors, there is little to indicate a bearish movement for near term natural gas contracts. The entire NYMEX Henry Hub market has continued an overall upward trend, forcing most energy market’s prices up as well. The energy markets heavily tied to natural gas for power burn, such as many zones in PJM, have seen similar upward movements in the forwards but more energy demand also brings higher day ahead prices.

 

Market Update 06 11 2021

Market Settles 06 10 2021

 

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