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Daily Market Update October 19, 2021

Early Morning Update

he Nov ‘21 natural gas contract is trading down $0.10 at $4.88.  The Nov ‘21 crude oil contract is up $0.41 at $82.85.

Summary

he only major thing that has been unwaveringly consistent in the natural gas market is its volatility. Market fell yesterday by $0.421/MMBtu and settled below the $5.000 line at $4.989/MMBtu. Strangely enough most of the natural gas production and demand fundamentals that the market typically tracks would indicate a bullish market. Production fell from the average level of 92Bcf/d to 90Bcf/d while some more exports have ticked up as a result of end of some maintenance. A lot of the price movement is likely as a result of one of the most important fundamentals, weather. Short term forecasts are calling for a relatively warm 20-day outlook, reaching into November and helping with the prompt month pricing. Further, preliminary outlooks for the upcoming winter are calling for a La Nina, bringing cold to the north east, some of the Midcon, and south west. The 2020 had also had a La Nina winter, the difference being that this year is predicted to be slightly on the warmer side of last year. With the exception of Winter Storm Uri, last year had been a rather warm year to begin with.

 

Market Update 10 19 2021

Market Settles 10 16 2021

 

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