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Daily Market Update November 01, 2021

Early Morning Update

he Dec ‘21 natural gas contract is trading down $0.10 at $5.33.  The Dec ‘21 crude oil contract is up $0.63 at $84.20.

Summary

olatility continues to be a trend for the NYMEX natural gas market and last week was quite the example.The November contract expired on Wednesday last week at $6.202/MMBtu after a whopping 92.2 cent rally between Monday and Wednesday.Upon it’s debut as the prompt month, the December NYMEX NG contract lost a combined 77.6 cents between Thursday’s and Friday’s trading sessions to settle at $5.451/MMBtu on Friday afternoon. The longer term calendar strips also started out the week with a pop, but ultimately fizzled out later on in the week.Calendar 2022 gained 2.9 cents on the week, closing Friday’s trading session at $4.39 and was the sole calendar strip to end the week with a positive gain.Calendar years 2024-2030 all started the week higher on Monday, but then lost steam and traded lower in the balance of the week.Still, each calendar strip is trading above the $3 mark, which is where producers of natural gas have indicated they’d like to see prices sustained as they consider future production plans.Demand for natural gas pushed higher last week, gaining 2.6 Bcf/d, driven by cooler temperatures in the Midcon and Northeast.LNG exports briefly reached 11.8 Bcf/day on Oct. 29th, nearly hitting the prior record high of 11.9 Bcf/day set in March 2021.All the while, production of natural gas increased 2.0 Bcf/d, almost entirely from the Texas onshore regions.On the storage front, the EIA reported a net injection into storage of 87 Bcf.The market was expecting a build of 92 Bcf, so it was slightly below expectations, yet higher than last year and the 5-year average.

 

Market Update 11 01 2021

Market Settles 10 29 2021

 

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