Daily Market Update October 29, 2021
Early Morning Update
he Dec ‘21 natural gas contract is trading down $0.18 at $5.60. The Dec ‘21 crude oil contract is down $0.56 at $82.25.
Summary
s Thursday came to a close, the new NYMEX natural gas prompt month of December 2021 fell by $0.416/MMBtu. This price change meant the prompt month fell back below the $6/MMBtu level once again, and settled at $5.782/MMBtu. What surprised the market is the fact that this decline happened in spite of a bullish injection sign since the EIA reported an injection of 87 Bcf while the expectation was for a 92 Bcf injection. Future injections are not forecasted to be greater than 30 Bcf at this time, but expected storage for end of season will be relatively close to the 5 year average, likely within approximately 100 Bcf of target. The bearish movement had possibly been impacted by global news as Russia had decided to push natural gas to European storage lowering the NBP marker down by nearly 10% on the news. Natural gas in the United States had historically been fairly independent of international supply/demand fundamentals and geopolitical news, but this trend seems to have slightly changed in the last 6 months or so.
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