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Daily Market Update June 02, 2022

Early Morning Update

The Jul ‘22 natural gas contract is trading up $0.32 at $9.01.  The Jul ‘22 crude oil contract is up $1.10 at $114.15.

Summary

Natural gas prices rallied sharply during Wednesday’s trading session, likely driven by an almost 2 Bcf/d drop in day-over-day production amidst steady industrial and power burn demand. The July contract traded as high as $8.791/MMBtu intraday, $0.646/MMBtu higher than Tuesday’s $8.145/MMBtu close. The prompt contract eventually settled at $8.696/MMBtu, up $0.551/MMBtu from the prior day. Wednesday’s $0.551/MMBtu delta is currently the second-largest day-over-gain within the July contract’s trading history, behind only the $0.649/MMBtu day-over-day gain from last Monday. The monthly contracts through next winter each climbed about $0.500/MMBtu as well, and the entire twelve-month strip settled up $0.458/MMBtu to $7.688/MMBtu. It’s certainly possible for prices to advance further after today’s potentially bullish Energy Information Administration (EIA) storage report. Most major polls are expecting a build ranging from the low-70s Bcf to the low-90s Bcf, below the 100 Bcf historical benchmark from both last year and the five-year average. Storage is currently resting at 1,812 Bcf, 22% below last year and 18% below the five-year average.

 

Market Update 06 02 2022

Market Settles 06 01 2022

 

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