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Daily Market Update July 29, 2022

Early Morning Update

The Sep ‘22 natural gas contract is trading up $0.18 at $8.31.  The Sep ‘22 crude oil contract is up $1.97 at $99.23.

Summary

A large move down at the front of the curve yesterday as the prompt month (now September) settled down $0.42 to close the day at $8.134.  The move down comes despite a disappointing storage report from the EIA, showing just 15 Bcf were added to reserves for the prior week.  Very high demand from power generation due to the heat blanketing the country.  We’re seeing NG power burns significantly higher than last year and the weather forecasts indicate that it is unlikely to change course as heat looks likely for most of the country through the next few weeks.  Due to the anticipated high demand, we’re expecting builds into storage over the next few weeks of just +15-20 next week and +40-45 the following week.  Given the low forecasted injections, the EOS storage estimates have fallen from a recent high of 3,650 to 3,450.  Low storage reserves will provide price support for this winter as the market anticipates another tight supply/demand balance ahead of heating season.

 

Market Update 07 29 2022

Market Settles 07 28 2022

 

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