Daily Market Update September 28, 2021
Early Morning Update
he Oct ‘21 natural gas contract is trading up $0.17 at $5.88. The Nov ‘21 crude oil contract is up $0.55 at $76.00.
Summary
fter yet another extremely bullish day, the NYMEX natural gas prompt month saw a mind-blowing $0.566 increase, settling at $5.706/MMBtu to start the week. This morning seems to have some of the same sentiment as prompt month prices continue to rise strongly and were trading above the $6 technical level. The relatively high double digit movement extends through the Winter Strip of 2023, though bullishness did continue after that. Today is the last trading day for the October contract, and volatility was expected, but not necessarily to this extent. Apart from regular natural gas fundamentals pushing the market upwards, U.S. Treasury yields have also changed the overall market by increasing and indicating a bond sell-off. This sell-off for bonds is also a very bullish indicator for stocks and commodities tied to the overall economy, particularly the energy sector. On a side note, this is a bearish sign for high-growth stocks, such as those in the technology sector. From the managed money sector, otherwise known as the speculators in the market, we see a continued net long position as prices soar past the $6/MMBtu mark.
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