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Daily Market Update October 01, 2021

Early Morning Update

he Nov ‘21 natural gas contract is trading down $0.18 at $5.69.  The Nov ‘21 crude oil contract is down $0.63 at $74.40.

Summary

his week was yet another very volatile week in the energy markets. NYMEX natural gas saw an average absolute change of $0.3735/MMBtu from Monday through Thursday this week, while Wednesday was the only negative day. Due to all of these price changes, the average change was $0.17/MMBtu up each day. Further international concern is causing worldwide natural gas markers to continue to rise to around $30/MMBtu. This worry has extended to other global superpowers like China, who just announced that they are effectively putting emergency protocols into place to allow for purchasing primary fuels at any price as long as it prevents blackouts. Hopefully, the United States doesn't see market conditions as abysmal as that, but production is not quite at the level to assuage the market fears. The long-term concern would be that gas storage cannot be replaced quick enough as drilled-but-uncompleted wells dwindle and the time period to drill new wells would outlast a high-priced winter. Speaking of storage, this week the U.S. Energy Information Administration reported an 88 Bcf injection, coming in 4 Bcf below the predictions in the market. This does outpace the 5-year average, but not by enough to create a bearish reaction in the market.

 

Market Update 10 01 2021

Market Settles 09 30 2021

 

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