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Daily Market Update September 07, 2021

Early Morning Update

The Oct ‘21 natural gas contract is trading down $0.07 at $4.64. The Oct ‘21 crude oil contract is down $0.99 at $68.30.

Summary

After last week's volatile NYMEX natural gas pricing movements and a long weekend to recover, trading today is making another big move, but in the opposite direction, although it is still very early in the trading session. This morning, the prompt month is trading down over a nickel from open as of writing this market update, but why the sudden shift given the bullish sentiment that the market trend has carried for so long? It's hard to say, especially when given the fact that trends ought to be measured over a longer period of time than the morning's trades. One likely factor could be the idea that the record upward trend of the last week and a half was due to too much buying, and there had to be at least a minor correction. Market correction could be influenced further by the lack of change to the fundamental supply and demand factors for the commodity, ergo confidence in spot pricing. Power burn had a brief hiatus due to lack of demand, especially within the eastern markets as a result of Hurricane Ida, but heat is on the forecast once again within the next week and a half, a bullish sentiment expanding on the current trend. Although demand is expected to be flat overall for the next two weeks, production is projected to expand by 1.3 Bcf/d in the same period.

 

Market Update 09 07 2021

Market Settles 09 03 2021

 

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