Daily Market Update June 22, 2021
Early Morning Update
The Jul ‘21 natural gas contract is trading up $0.07 at $3.26. The Jul ‘21 crude oil contract is down $0.41 at $73.25.
Summary
The market has seen a bit of a decrease in Henry Hub natural gas prices as temperatures cool down from their extreme highs out West. The demand sectors for power burn and Res/Comm have more or less offset one another, while industrial demand increased and was not counterbalanced. As a result, total U.S. demand increased by 0.8 Bcf/d, but production has, thankfully, picked up after maintenance season has all but finished up. To this end, production levels have hit closer to the 92 Bcf/d level, coming in 2.0 Bcf/d higher than the last few months. LNG exports remain high, sticking above the 10 Bcf/d level, while Mexican exports have hit record levels at and above 7.0 Bcf/d due to power burn demand during their own heat wave. Unfortunately, market speculators still hold many more long positions compared to shorts. While these market participants do not define the market, this does demonstrate the market sentiment that we have seen for the month thus far.
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