Daily Market Update October 06, 2022
Early Morning Update
The Nov ‘22 natural gas contract is trading up $0.17 at $7.10. The Nov ‘22 crude oil contract is up $0.04 at $87.80.
Summary
The natural gas market had a quieter trading session yesterday, as the nearer-term strips pushed slightly higher and the back of the curve closed lower. The prompt month and the Cal ’23 strip settled nine cents higher. Cals ’24-’28 settled one to four cents lower. From a fundamentals perspective, demand continues to slide along with a slight drop in supply. Res/Comm demand contributed the most to the demand destruction, falling 0.8 Bcf/d day-over-day. Power burn demand remained flat on the day, yet over 3.0 Bcf/d higher from a week ago. Supply fell only 0.2 Bcf/d, stemming from a decrease in Canadian imports. Domestic production went unchanged, still at 96.7 Bcf/d. Bentek is forecasting a storage injection of 125 Bcf for the week ended September 30. An injection of this level would mark the second highest injection since January 2010 and beat the five-year average by 38 Bcf. Weather forecasts for the next twenty days look consistent as the West and Pacific Northwest will likely see above-normal temperatures. The rest of the country is expected to experience mild to below-normal conditions.
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