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Daily Market Update June 28, 2021

Early Morning Update

The Jul ‘21 natural gas contract is trading up $0.05 at $3.55.  The Aug ‘21 crude oil contract is flat at $74.05.

Summary

Last week’s NYMEX natural gas pricing activity was mostly strong, particularly in the front of the curve. The July ‘21 contract, which will expire after today’s trading session, started off the week by losing nearly 2.5 cents last Monday, but in a stark turnaround, rallied the rest of the week and ultimately gained 28 cents. Similarly, the next three quarterly strips all finished with big gains, as Q3-21, Q4-21, and Q1-22 gained 28 cents, 25.8 cents, and 21.5 cents, respectively. The 2022-24 calendar years gained 13.5 cents, 4.3 cents, and .02 cents, respectively. These gains are mostly centered around the near term, as gains in demand seem to be outpacing gains in supply. Year to date, total demand for 2021 is up 3.6 Bcf/day, most of which is coming from LNG exports and pipeline exports to Mexico. Production of natural gas is down 1.0 Bcf/day, with the year-to-date average at 90 Bcf/day. Demand is all but set to continue to see gains this week as rising temperatures are likely to lift demand across several regions. In other news, the Biden administration reached a tentative deal on a bipartisan infrastructure plan valued at $579 billion over five years. The plan includes $174 billion in electric vehicle spending, $100 billion for the power grid, and $46 billion in clean energy manufacturing.

 

Market Update 06 28 2021

Market Settles 06 25 2021

 

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