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Daily Market Update June 29, 2022

Early Morning Update

The Aug ‘22 natural gas contract is trading up $0.15 at $6.72.  The Aug ‘22 crude oil contract is up $1.54 at $113.30.

Summary

Yesterday saw little day-over-day change for natural gas, despite a nearly 40-cent trading range for the prompt month on its settlement day, as the July 2022 contract ultimately closed at $6.551/MMBtu for the month, representing a climb of five cents from Monday’s close. The more interesting stat is the $2.26 drop that July saw during it’s time as the prompt month from its initial opening price at $8.81/MMBtu on May 27th. The rest of the near-term forward curve moved in a similar manner to July, with a wide trading range through early 2023, but with the balance of 2022 moving up just 2.6 cents and the 12-month strip climbing just 1.7 cents. There was slight movement to the downside for all forward months beyond March 2023, with the calendar strip for 2023 showing no day-over-day change, 2024 showing a two-cent drop, and then a three-cent drop on every year from 2025 through 2034. The backwardation stretches out to 2027, with the low price on the board at $4.42, which represents a 77-cent discount to the near-term 2023 calendar strip. On the natural gas demand side of the supply/demand balance, power burn demand has eased over the past seven days, likely on the milder temperatures this week.

 

Market Update 06 29 2022

Market Settles 06 28 2022

 

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