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Daily Market Update September 02, 2022

Early Morning Update

The Oct ‘22 natural gas contract is trading down $0.23 at $9.03. The Oct ‘22 crude oil contract is up $2.34 at $88.95.

Summary

A bumpy day at the front of the NYMEX curve, with the prompt month trading in a $0.38 range, before it ultimately settled up $0.135. The market again seemed to test the $9.00 support level when it hit $9.01 but traders decided and $8-handle wasn’t in the cards so prices moved back up. The EIA reported a build into storage of 61 Bcf, which implied a slightly looser supply/demand balance but the market rallied on the news. The market had been expecting a build in the high 50’s so this was a mild surprise. Last year, the injection was 21 bcf and the 5-year average for this time was 46 bcf, so the deficit to both was slightly reduced. In terms of the market dynamics next week, traders are still focused on weather and the high temperatures that are forecast for much of the country, especially California. These persistent high temps are continuing to drive high NG demand across the country and there does not appear to be an end in sight. But as we progress through Sep and into fall, high temps will turn bearish so if they continue then, it may delay a start to heating season and allow larger injections later into the fall

 

Market Update 09 02 2022

Market Settles 09 01 2022

 

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