Daily Market Update September 22, 2021
Early Morning Update
he Oct ‘21 natural gas contract is trading up $0.03 at $4.84. The Nov ‘21 crude oil contract is up $0.91 at $71.40.
Summary
YMEX natural gas prices continued their slide downward through the near term during Tuesday’s trading session, marking the fourth consecutive day of the downward movement. The October prompt month contract lost 18 cents, closing at $4.805/MMBtu, and the winter strip of November to March also moved down 18 cents, highlighting the consistent movement through the short term curve. However, this downward slide did not extend beyond the end of the winter strip as every month past next March saw upward movement. Both the 12-month strip, which dropped 8.5 cents, and the calendar strip for 2022, which lost 3.8 cents to close at $3.96, showed net drops due to the near term slide, but calendar strips 2023 and 2024 both gained two cents each to move to $3.266 and $2.99, respectively. The calendar strip for 2025 remains the low point on the board at $2.96 after gaining 1.8 cents, and all other forward calendar strips gained 1.7 cents beyond there. On the fundamentals side, domestic natural gas production was at a 27-day high yesterday, just below 90 Bcf/d, and demand has remained relatively flat through the past week. Power burn demand has trended down, but increasing exports have offset much of the domestic demand drop.
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