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Daily Market Update June 16, 2022

Early Morning Update

The Jul ‘22 natural gas contract is trading up $0.37 at $7.79.  The Jul ‘22 crude oil contract is down $0.91 at $114.40.

Summary

There was weaker volatility in the NYMEX natural gas market yesterday with most of the movement at the front of the curve. The prompt month settled $0.231 higher day-over-day at $7.42/MMBtu. Although the prompt month price rose, it still closed $1.19 lower relative to Monday’s settle. The 12-month strip jumped $0.139 since the prior trading day to close at $6.954/MMBtu. The Cal 2023 strip gained $0.03, while Cals 2024-2034 gained between $0.04-$0.06 in yesterday’s trading session. These price increases can be attributed to a tightening of natural gas supply and demand fundamentals. On the supply side, there was an increase to U.S. production by 0.3 Bcf/d, mostly coming from the production in the Northeast region. At the same time, Canadian imports decreased by 0.1 Bcf/d, which partially offset any domestic production increases. Power burn demand set a year-to-date high at 45.1 Bcf/d yesterday, but has backed off slightly to 43.9 Bcf/d today. Today’s storage estimates are bullish at around 91 Bcf, up 63 Bcf from the injection seen for the same week last year. Temperature forecasts in the Midwest and Southeast remain high as that heat will shift to the West in the back half of June.

 

Market Update 06 16 2022

Market Settles 06 15 2022

 

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