Daily Market Update September 27, 2022
Early Morning Update
The Oct ‘22 natural gas contract is trading down $0.02 at $6.88. The Nov ‘22 crude oil contract is up $1.19 at $77.90.
Summary
The natural gas market opened to a rollercoaster day on Monday, seeing prices drop for the majority of the trading session before erasing all losses and settling slightly up from Friday. The prompt month was down nearly 30 cents at certain points yesterday, before settling up 7.5 cents to $6.903/MMBtu. Most of the movements upward were confined to the upcoming winter months, as March 2023 and beyond all settled slightly down, anywhere from three to eight cents. The impending Hurricane Ian coming into the Gulf region may be putting some unease in both the supply and demand sectors, as a few offshore platforms have already shut-in in anticipation of the storm. Potential impacts are uncertain as of now, though, as the current trajectory may miss other oil and gas-producing regions of the gulf. From the demand side, there have not been any LNG export impacts as of yet, but it is something to watch over the coming days. Expected temperature drops and potential power outages could also dampen demand from the residential & commercial, as well as industrial, sectors.
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