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Daily Market Update September 30, 2021

Early Morning Update

he Nov ‘21 natural gas contract is trading up $0.18 at $5.66.  The Nov ‘21 crude oil contract is down $0.83 at $74.00.

Summary

ear-term natural gas prices have been on one very bumpy rollercoaster ride as of late, and yesterday's trading session was no different. The Nov '21 prompt month lost 40 cents on the day, ultimately settling at $5.477. The Nov-Mar '22 winter strip lost an impressive 37 cents, and Cal '22 fell 16 cents, as well. The weakness stopped with Cal '24 and beyond as prices actually increased day-over-day. Natural gas production remains a big question on everyone's mind. Yesterday saw production increase 0.2 Bcf/d to 89.9 Bcf/d in total, but that's still lagging behind the pre-hurricane levels of around 91 Bcf/d. Power burn demand is expected to drop off the remainder of this week in Texas and the Southeast, which would normally be a bearish signal to the market. Unfortunately, LNG demand will likely offset the decrease in power burn and offer limited downside to pricing, if any. LNG exports have been hovering around 10.2 Bcf/d, with more bullishness on the horizon as Train 6 at Sabine Pass starts its commissioning process. Some potential bearish news though could be this week's storage report. Market participants are expecting an injection of 82 Bcf to be reported, which is larger than the 5-year average benchmark by 10 Bcf. Looking ahead, the following two weeks’ injections are expected to be slightly larger than the 5-year average, as well.

 

Market Update 09 30 2021

Market Settles 09 29 2021

 

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