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Daily Market Update July 21, 2022

Early Morning Update

The Aug ‘22 natural gas contract is trading down $0.20 at $7.81.  The Sep ‘22 crude oil contract is down $3.98 at $95.90.

Summary

The natural gas market has strengthened throughout July as heat continues to cover most of the country. The prompt month settled yesterday at $8.007/MMBtu, which up $1.41 week-over-week. The 12-month strip gained almost a dollar at yesterday’s close at $7.899/MMBtu. For the 2023 Calendar strip, it is up around fifty cents from a week ago. The 2024-2028 Calendar strips saw some gains of about twenty cents week-over-week, but still mostly down from the prior month. Fundamentals are slightly unwinding as demand starts to fall off record highs. Overall demand fell on the day by 1.3 Bcf/d, stemming mostly from a decrease in Northeast power burn. The 0.6 Bcf/d decrease to res/com demand yesterday was largely offset by a 0.6 Bcf/d increase to LNG exports. On the supply side, production is little changed on the day, only down 0.1 Bcf/d and has yet to maintain the 95 Bcf/d mark that was reached earlier this week. Bentek is projecting a storage injection of 39 Bcf for the week ended July 15. An injection of this level would be lower than the previous year’s injection and below the 5-year average for the same week. Temperatures for the remainder of the week will be above normal for most of the country. The Pacific Northwest and East Coast will continue to experience heat for the rest of the month, as the heat will travel to the Central U.S. at the beginning of August.

 

Market Update 07 21 2022

Market Settles 07 20 2022

 

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