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Daily Market Update October 07, 2021

Early Morning Update

he Nov ‘21 natural gas contract is trading down $0.15 at $5.52.  The Nov ‘21 crude oil contract is down $0.43 at $77.00.

Summary

arket participants were hopefully still wearing their seatbelts during yesterday's bumpy trading day, which featured more of the same track passengers have been riding since April. Wednesday's session featured one of the widest intra-day trading ranges in recent history for the prompt contract.The November contract sprinted out of the gate early, climbing nearly $0.15 to the day's peak of $6.466/MMBtu.Within a few hours, the same term plunged $0.80 back to Earth and bottomed to $5.663/MMBtu, ultimately settling $0.637 lower day-over-day at $5.675/MMBtu. This same pattern was echoed less-intensely throughout the near-term curve, likely from elements of both technical trading and continued warmth forecasted throughout October.Natural gas demand has been fairly light over the last few weeks, as comfortable temperatures have allowed stockpiles to slowly chip away at the current storage deficit.According to a Bloomberg poll, today's U.S. Energy Information Administration storage report for the week ending October 1st may result in a triple-digit injection.Despite some bearish momentum, passengers will likely have to endure more upside volatility over the coming weeks as winter forecasts begin to crystalize their influence on domestic and international storage levels. Expectations of a harsh winter could force the U.S. to compete with Asia and Europe for domestically-produced power burn feed gas, likely leading to significant upward pressure on prices.

 

Market Update 10 07 2021

Market Settles 10 06 2021

 

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