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Daily Market Update June 30, 2022

Early Morning Update

The Aug ‘22 natural gas contract is trading down $0.06 at $6.44.  The Aug ‘22 crude oil contract is down $0.98 at $108.80.

Summary

Short-term gas prices fell slightly during yesterday’s natural gas trading day, likely upon expectations of looser supply and demand fundamentals through next winter.According to Platts, natural gas demand is expected to decline by about 2.0 Bcf/d from current highs well into the holiday week.Although most weather outlooks are still anticipating a warm July, the market seems to believe any potential demand slump will be enough to bolster storage and soften prices.As such, monthly prices fell day-over-day through the March ‘23 contract.The August prompt contract declined by $0.072 and settled at $6.498/MMBtu.The September contract performed similarly, losing $0.064 and settling at $6.493/MMBtu.However, monthly prices starting with April ‘24 gained day-over-day, further shrinking the spread between next winter and next spring.The April ‘24 contract gained $0.44 and settled up to $4.753/MMBtu, while the May through December 2023 contracts also gained a few cents.Market participants are expecting another potentially bearish storage report to be released later on today by the EIA. A 79 Bcf injection is anticipated for the week ended June 24th, which exceeds last week's build by five Bcf, as well as both the 5-year average and last year by six Bcf. If actualized as expected, this would help improve the deficit to historical levels slightly.

 

Market Update 06 30 2022

Market Settles 06 29 2022

 

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