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Daily Market Update May 11, 2022

Early Morning Update

The Jun ‘22 natural gas contract is trading up $0.15 at $7.54.  The Jun ‘22 crude oil contract is up $3.54 at $103.30.

Summary

Sustained volatility seems to be the theme so far this year, with fear continuing to build in the market as we head into summer. Summer weather outlooks have been showing warmer-than-normal temperatures for the majority of the country with the concentration of heat over the Rocky’s down into Texas. Texas is already seeing an early start to summer with a heat wave moving through the region this week leading to a spike in demand not typically seen in the late spring. Last week, much of the country experienced late season colder-than-normal temperatures. Tomorrow, the EIA is expected to report a storage build of around 74 Bcf, less than the 5-year average benchmark of 82 Bcf, which will, once again, widen the deficit. For the first time in over a month, U.S. dry production saw a slight uptick, averaging just under 94.0 Bcf/d over the last week., but is still a long way from the late 2019 peak of just under 96.0 Bcf/d. Once again, Russia is playing a part in the volatility of global LNG prices, as flows from the Ukrainian hub to Europe are expected to halt Wednesday due to disruptions from pro-Kremlin troops. U.S. LNG exports over the last week have averaged 12.2 Bcf/d, still lower due to planned maintenance. Yesterday, the NYMEX prompt month price saw significant intraday pricing swings ranging from $6.43-$7.46, before ultimately settling at $7.385/MMBtu for the day.

 

Market Update 05 11 2022

Market Settles 05 10 2022

 

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