Daily Market Update September 08, 2021
Early Morning Update
The Oct ‘21 natural gas contract is trading up $0.09 at $4.66. The Oct ‘21 crude oil contract is up $0.95 at $69.30.
Summary
NYMEX natural gas traded down through the near-term during yesterday’s trading session following the long Labor Day weekend, but the months further out on the pricing curve saw some upward movement. The October prompt month contract fell 14 cents, while the winter strip of November 2021 to March 2022 dropped 13 cents. The downward momentum faded fast through the curve, as the twelve-month strip gave up six cents and the 2022 calendar strip slid down just 2.75 cents to $3.85. Calendar strips 2023 through 2025 all gained around a penny, with 2025 remaining the lowest priced strip on the board at $2.85. Beyond there, the calendar strip for 2026 gained 2.8 cents and 2027 through 2033 all shifted up a nickel. On the fundamentals side, natural gas production remains just above 88 Bcf/d and has held near there since Hurricane Ida entered the Gulf. Expectations are that production will increase through this week and into next as repairs are completed and crews return to offshore platforms. On the demand side, the power burn sector has increased from the weekend on warmer temperatures through the midcon and northeast regions, which are expected to remain through much of the rest of the month.
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