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Daily Market Update August 24, 2022

Early Morning Update

The Sep ‘22 natural gas contract is trading up $0.10 at $9.29.  The Oct ‘22 crude oil contract is up $0.56 at $94.30.

Summary

There’s never a dull day in the market, it seems! Yesterday, the NYMEX natural gas September prompt month breached the $10 technical trading level and saw a wide trading range, reaching $10.028/MMBtu down to $9.050/MMBtu, before ultimately settling at $9.193/MMBtu. This was 48.7 cents lower than the prior day settle. The large price swing may have been in reaction to the news that Freeport LNG pushed back the estimated restart from October to November, which is about 2.0 Bcf/d of LNG export demand that would come back online. While the downward move was significant, pricing still remains above $9 as weather forecasts for the back half of August have warmed, most notably in the northern half of the country. U.S. dry production dipped slightly after getting very close to 96 Bcf/d this past weekend, dipping down to just under 95 Bcf/d yesterday. Tomorrow, the EIA is expected to report an estimated 51 Bcf into storage. This would be above the 5-year average benchmark of 46 Bcf, and much improved versus last week’s disappointing report. End-of-season inventory levels dipped slight to around 3,440 Bcf, and concerns for winter remain as we head into maintenance season and coal stockpiles remain weak.

 

Market Update 08 24 2022

Market Settles 08 23 2022

 

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