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Daily Market Update August 18, 2022

Early Morning Update

The Sep ‘22 natural gas contract is trading up $0.04 at $9.28.  The Sep ‘22 crude oil contract is up $1.89 at $90.00.

Summary

Yesterday, the natural gas market shed some of the gains made from the day prior, as futures were down slightly as a result of declining demand in the Northeast and South. The prompt month settled nine cents lower on the day, yet remains up close to a dollar from the start of the month. The Cal ’23 strip closed marginally lower while up $0.67 since August 1st. Cals ’24-’28 followed the same movement, all settling lower on the day. From a fundamental perspective, supply saw gains, while demand fell day-over-day. Supply grew by 1.4 Bcf/d to break through that 100 Bcf/d total supply level again after falling short the last two days. U.S. Demand fell 0.6 Bcf/d on the day, mostly due to power burn demand declining 1.2 Bcf/d with some offset coming from the res/comm sector. However, total demand was flat on the day, as exports grew by 0.6 Bcf/d. Bentek is expecting a 29 Bcf storage injection for the week ended August 12, which would be significantly lower than the 5-year average, as well as the same week last year. For an injection of this level, current stocks would fall 356 Bcf short of the 5-year average, allowing the storage deficit to continue. Weather patterns for August show temperatures in the Pacific Northwest being well above normal, while most of the South will experience cooler-than-normal temperatures. Next week, the Northeast temperatures will heat up slightly above normal, but will subside by the end of the month.

 

Market Update 08 18 2022

Market Settles 08 17 2022

 

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