Daily Market Update September 14, 2022
Early Morning Update
The Oct ‘22 natural gas contract is trading up $0.28 at $8.56. The Oct ‘22 crude oil contract is up $0.09 at $87.40.
Summary
Set against the backdrop of the past few months, near-term natural gas trading was relatively quiet for much of yesterday, but there was a slight climb, which added to Monday’s upward movement. The October prompt month contract moved up just 3.5 cents to close at $8.284/MMBtu, while the winter strip of Nov ‘22 to Mar ‘23 tacked on 6.7 cents, with the bulk of the weight at the end of the strip as March climbed 10.5 cents. The 12-month strip followed suit along with the 2023 calendar strip, with both adding five and a half cents. Beyond the near calendar strip, 2024 added just under four cents, and 2025 through 2028 all added around three cents. The low trip on the board is 2026 at $4.90. The very end of the curve showed some strong upward movement with 2031 climbing just under ten cents, and 2032 through 2034 climbed seven cents. On the supply side for natural gas, domestic production has slid from a recent high of 96.7 Bcf/d set on Monday as it has hovers around the 96 Bcf/d mark both yesterday and today. Demand has likewise declined as we move into September, with the leading sector being power burn demand for electric generation as temperatures moderate. However, forecasts are showing the above-average temperatures will remain for a bit longer, which would likely be reflected in near future demand numbers.
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