Daily Market Update August 30, 2022
Early Morning Update
The Oct ‘22 natural gas contract is trading down $0.36 at $8.97. The Oct ‘22 crude oil contract is down $3.21 at $93.80.
Summary
The last day of trading for the September natural gas contract was a somewhat mild one compared to previous settlement days, with a relatively small range of trading an only a slight strengthening before closing. The September month closed at $9.353/MMBtu yesterday, while the 12-month strip gained eight cents to $7.78. 2023 increased nearly ten cents to $6.66, and 2024 rose seven cents to $5.31.Production has maintained a level of 96 Bcf/d or higher for the last five days in a row, giving a little bit of hope for the supply side of the balancing equation. The extreme nationwide heat that had been commonplace since mid-July has calmed slightly, with most of the high temperatures focused on the West Coast and Pacific Northwest. This has allowed for some slight softening of demand on the power burn side, although some hotter days out east this week may cause a slight raising of the monthly average gas used for electric generation.
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