Daily Market Update September 16, 2022
Early Morning Update
The Oct ‘22 natural gas contract is trading down $0.19 at $8.13. The Oct ‘22 crude oil contract is up $0.16 at $85.26.
Summary
Yesterday, the market dropped as fast as it rose on Wednesday. News that a rail strike seemed to be averted let the market breathe a sigh of relief as coal deliveries look set to continue. A disruption of coal deliveries, while inventories are already low, would have been near catastrophic and would have certainly led to an increase in gas demand. The market rallied Wednesday after a key union rejected a contract offer and the market realized that the unthinkable was now nearly upon us. But an agreement was reached and the market sold off to nearly the same level before the rally. The markets’ concern, of course, is that NG power burns levels are already very high due to high demand and low coal inventories. Any increase from this point would be difficult to manage and would have further increased gas demand and spark spreads
Loading please wait...