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Daily Market Update September 15, 2021

Early Morning Update

The Oct ‘21 natural gas contract is trading up $0.20 at $5.46. The Oct ‘21 crude oil contract is up $1.44 at $71.90.

Summary

While shoulder seasons historically have shown some relief for pricing, this year seems to be the exception. Pricing continues to rally, as Hurricane Nicholas wreaks havoc on eastern Texas into Louisiana, causing, yet again, another dip to production levels. The Freeport LNG export facility has three trains offline due to Nicholas due to power issues. U.S. dry production had been increasing slightly after Hurricane Ida, but saw a slight dip due the recent hurricane, averaging just under 89.0 Bcf/d. The U.S. Energy Information Administration is expected to report around a 70 Bcf injection tomorrow. While this is definitely higher than we have been seeing over the past few weeks, it would still be less than the five-year average benchmark of 79 Bcf and continue to widen the storage deficit. The NYMEX natural gas futures price for October was up another 2.9 cents yesterday to settle at $5.260/MMBtu and continues to climb higher this morning. It appears the volatility is here to stay with no end in sight if supply does not pick up to meet current demand to help alleviate the tightness in the market as we head into winter. We are also not out of the woods yet as far as hurricane season goes, which typically lasts until the end of October.

 

Market Update 09 15 2021

Market Settles 09 14 2021

 

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