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Daily Market Update October 18, 2022

Early Morning Update

Please Note: Starting Oct. 20, your Daily Market Updates will be delivered by NRG. Nothing else changes. It’s the same great info with a fresh, new look. Enjoy!The Nov ‘22 natural gas contract is trading down $0.03 at $5.97.  The Nov ‘22 crude oil contract is down $0.36 at $85.10.

Summary

Yesterday, the NYMEX natural gas prompt-month contract shed 45.4 cents to settle at $5.999/MMBtu.The sell-off did not end there, with calendar year 2023 losing 10.6 cents, settling at $5.496, while calendar years 2024 and 2025 lost less than a penny.Recent natural gas production has been strong, setting a new record earlier in October at 98.7 Bcf/day.This is a welcomed sign to market participants who have watched the natural gas prices move to the highest levels seen in a decade, prior to the shale boom, amidst rebounding demand after the pandemic and growing demand from natural gas exports, as well as power burn demand.This stronger production has been making it’s way into storage, as we have now seen four weekly EIA storage reports greater than 100 Bcf, exceeding the 5-year average each time.On the demand side of the equation, res/comm heating demand is projected to increase by 6.0 Bcf/day today to 27.4 Bcf, given lower temperatures across the country.However, this weather pattern is expected to flip by the end of the week.New York City is anticipating a return to sunny and 60 degree temperatures for the weekend, alleviating the pull on heating demand.Natural gas prices are likely to continue to be volatile and weather-sensitive as we head into the winter.

 

Market Update 10 18 2022

Market Settles 10 17 2022

 

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