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Daily Market Update August 09, 2022

Early Morning Update

The Sep ‘22 natural gas contract is trading up $0.21 at $7.80.  The Sep ‘22 crude oil contract is up $0.64 at $91.40.

Summary

Yesterday, the NYMEX natural gas September prompt-month contract fell 47.5 cents, ultimately setting at $7.589/MMBtu.The sell off was broad and carried through the curve as calendar year 2023 lost 17.9 cents, and calendar year 2024 lost 4.8 cents, settling at $5.423 and $4.636/MMBtu, respectively.Power burn has been very strong this year, up 2.1 Bcf/day versus last year, but particularly this summer, when power burn demand is at it’s highest. August month-to-date is up 8.1 Bcf/day versus last August. Much of the gain this month has been in the Northeast, up 3.2 Bcf/day, or 36%, while the Southeast is also up 2.0 Bcf/day, or 18%. As the heat on the East Coast fades towards more ‘normal’ temperatures, market participants are breathing a sigh of relief, for now. Another welcomed sign from the market was news of producers’ commitment to increase rig counts amid the elevated price environment, particularly in the southern shale plays in the Permian, Haynesville, and Eagle Ford.This is a welcomed sign as production of natural gas has finally been trending marginally higher, average 95.3 Bcf/day so far this month, up 2.9 Bcf/day versus August 2021.

 

Market Update 08 09 2022

Market Settles 08 08 2022

 

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