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Daily Market Update September 21, 2022

Early Morning Update

The Oct ‘22 natural gas contract is trading up $0.22 at $7.94.  The Oct ‘22 crude oil contract is up $1.26 at $85.20.

Summary

So far, September has been on a bumpy ride. From potential rail strike rallies to relief following a potential labor solution, coupled with some much-welcomed relief in weather forecasts, the market continues to search for direction. Weather forecast show warming temperatures as we head into October. However, those can quickly turn bearish as the normal temperatures for the period decline. So far, hurricane season has been quiet, as far as impacts to the U.S., with no immediate threats. Winter weather forecasts will begin to trickle in and, depending on the outlook for the start of winter, could also create volatility in the near term. The October natural gas contract was all over the place yesterday, trading between $7.985 and $7.647/MMBtu, before ultimately settling down 3.5 cents on the day at $7.717/MMBtu. U.S. dry production took a dip these past few days after a promising signal to the upside earlier this month when it was closing in on 97 Bcf/d, with current levels now just over 95 Bcf/d. Tomorrow, the EIA is expected to report a healthy 92 Bcf storage build. This would exceed the 5-year average of 81 Bcf for that corresponding week and narrow the deficit to around 343 Bcf, compared to the benchmark.

 

Market Update 09 21 2022

Market Settles 09 20 2022

 

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