Daily Market Update September 01, 2022
Early Morning Update
The Oct ‘22 natural gas contract is trading down $0.01 at $9.13. The Oct ‘22 crude oil contract is down $1.85 at $87.70.
Summary
The natural gas market was little changed day-over-day. The prompt month increased almost nine cents, while all other strips remained quiet. The most notable movement is in Cals ’27-’28, after jumping eighty cents over the last week. From a fundamental perspective, supply rose 0.5 Bcf/d, while demand declined 2.5 Bcf/d. Production grew in the Northeast, bringing domestic gross production back to above 110 Bcf/d. The sharp fall in demand came from lower power burn demand in the Northeast. Bentek is projecting a 57 Bcf injection for the week ended August 26, which would be well above last-year and five-year average benchmarks. An injection of this level would bring total stocks to 2,636 Bcf, continuing the trend of a storage deficit. Weather patterns over the next ten days will bring record heat to California and the West, with some of that heat extending over the North. Texas and the Southeast are to remain normal temperatures.
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