Daily Market Update November 15, 2021
Early Morning Update
he Dec ‘21 natural gas contract is trading up $0.11 at $4.90. The Dec ‘21 crude oil contract is down $0.89 at $79.80.
Summary
ast week saw a slight increase in production that coincided with around a 10 Bcf/d total demand increase. Over the weekend, the total U.S. demand rose to 103.2 Bcf/d. This is mainly due to power burn and Residential-Commercial demand increases. In the Northeast, we saw colder temperatures, and this lead to the increase in power burn. Production dipped below 94 Bcf/d over the weekend, but is back to 94.3 Bcf/d today. Texas saw the largest production increase at 0.4 Bcf/d, while both the Northeast and Midcon regions increased by 0.1 Bcf/d. As mentioned earlier, the Northeast saw cooler temperatures over the weekend, and that trend continues into the early parts of this week. Temperatures are predicted to increase slightly in the middle of the week before dropping back down to cooler temperatures towards the end of the week. The western half of the country is experiencing the opposite pattern. In Texas we saw higher temperatures at the beginning of this week, before it cools off slightly as the week moves on. The natural gas prompt month is up a dime from Friday, and is currently trading at $4.84/MMBtu. Increases in prices are expected to continue to rise slightly due to the colder temperatures in the Northeast, causing more gas usage for heating demand in the region.
Loading please wait...