Daily Market Update October 20, 2021
Early Morning Update
he Nov ‘21 natural gas contract is trading down $0.11 at $4.98. The Nov ‘21 crude oil contract is down $0.96 at $82.00.
Summary
esterday’s trading session saw NYMEX natural gas turn higher after initially continuing the downward trend from the day before through the first half of the day. The November prompt month contract was down as much as 16 cents at $4.825/MMBtu, but ultimately settled back above the $5 mark, 26 cents higher at $5.088 representing a gain of 10 cents from where it opened. The winter strip showed similar movement and ultimately gained 11 cents on the day, with the January 2021 contract showing the most movement, climbing 12 cents and trading in a 29-cent range. There was not much day-over-day gain beyond the winter strip, as the twelve-month strip added four and a half cents, but nearly all months showed a 10-cent intraday range. The forward calendar strips were fairly flat, as 2024 through 2026 moved a penny and a half lower, and the low strip on the board, Cal 2026, now just under the $3.10 mark at $3.098. On the fundamentals side, domestic production has trended higher since it’s recent low point of 88.3 Bcf/d on October 16, with yesterday’s output just under 90.5, and today’s projected above the 91 Bcf/d mark. Demand has also increased steadily this week, with power burn demand and exports to Mexico leading the way.
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