Daily Market Update October 06, 2021
Early Morning Update
he Nov ‘21 natural gas contract is trading down $0.25 at $6.06. The Nov ‘21 crude oil contract is down $0.93 at $78.00.
Summary
atural gas continued its rally yesterday with sharp upward movement as the November prompt month contract closed well above the $6 mark at $6.312/MMBtu, representing a gain of 54.6 cents on the day. This is the highest close for the November 2021 contract, surpassing the previous high set just last Tuesday at $5.88. The winter strip also showed significant movement up, closing at $6.334, with all months from Nov ‘21 through Feb ‘22 gaining over 50 cents and climbing above $6, and Mar ‘22 gaining just under at 49 cents and at $5.996. The 12-month strip surpassed the $5 mark and sits at $5.017 after gaining just under 30 cents. This is the first time since June 8, 2011, that the 12-month strip has been above the $5 mark. The 2022 calendar strip followed closely behind, gaining 22 cents and closing at $4.66. Beyond the front calendar strip, Cal ‘23 gained five cents, and Cals ‘24 and ‘25 moved up around four cents. The backwardation remains out to Cal ‘26, now just above $3 at $3.014 after moving up two cents. The price rally also continued overseas - UK pricing exceeded $40 for prompt month LNG, Euro pricing is just under $40, and pricing in Asia is just under $30. Domestically, NG production has slowly trended higher over the past week, moving above 90 Bcf/d for the first time since the last week of August.
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