Daily Market Update June 27, 2022
Early Morning Update
The Jul ‘22 natural gas contract is trading down $0.02 at $6.20. The Aug ‘22 crude oil contract is up $0.28 at $107.90.
Summary
The natural gas prompt month closed out the week at $6.22/MMBtu, down $0.019 day-over-day, while the 12-mo strip finished at $5.867/MMBtu, down over 50 cents from the previous day. Over the weekend, demand, production, and exports were largely flat. Production increased to 95.4 Bcf/d on Saturday and has not moved since, while exports to Mexico and LNG exports both decreased since Friday by 0.2 Bcf/d each and currently sit at 6.0 Bcf/d and 10.2 Bcf/d, respectively. The only sector to see some change was demand. However, the changes in demand were offset by each other. Power burn saw a decrease of 2.8 Bcf/d and is currently at 38.8 Bcf/d. The Northeast saw the largest decline of power burn demand, followed by the Southeast, and then Texas. Res/comm demand increased by 1.3 Bcf/d and is currently at 12.5 Bcf/d. Both the Midcon and Northeast regions saw res/comm demand increases of 0.6 Bcf/d over the weekend. Current weather projections show a relief from heat in the ERCOT region, with temperatures forecasted lower than normal. The rest of the nation is expected to be at normal summer temperatures, except for CAISO, which will see slightly higher-than-normal temperatures.
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