Daily Market Update August 02, 2022
Early Morning Update
The Sep ‘22 natural gas contract is trading down $0.33 at $7.95. The Sep ‘22 crude oil contract is down $0.09 at $93.80.
Summary
More market whiplash headlined Monday’s trading session, as an afternoon rally erased the significant losses seen earlier in the day for near-term contracts and settled slightly up on the day. Months through the middle of 2023 were down anywhere from 25 to 40 cents prior to the afternoon uplift. Increasing demand, after a brief respite, is expected to be a leading a cause of strength. Power burn leads the way in the demand sector, with around 45 Bcf/d expected through the next two weeks. The cooling load that is associated with power burn is not looking to abate any time soon, as nationwide temperatures continue to clock in considerably above 30-year normal values. This week in particular is expected to see high demand in nearly all markets. We will see if the slight increase in production to over 95 Bcf/d will continue to hold steady as it has since the end of last week and start to make a larger impact on overall storage balance.
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