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Daily Market Update September 29, 2022

Early Morning Update

The Nov ‘22 natural gas contract is trading down $0.16 at $6.79.  The Nov ‘22 crude oil contract is up $0.15 at $82.30.

Summary

The front of the natural gas pricing curve reversed direction yesterday as the October NYMEX contract went out with a bang, expiring on Wednesday almost 22 cents higher than the previous day’s settle at $6.686/MMBtu. The Nov ’22 contract, which makes its debut as the prompt month today, also climbed higher, closing 19.5 cents higher to settle at $6.955/MMBtu. Beyond that, Cals ’23-’26 all saw very little movement. From a fundamentals perspective, demand continues to slide, along with a slight drop in supply. Cooler temperatures and Hurricane Ian softened power burn demand by 0.9 Bcf/d, stemming from drops in the Southeast up through the Northeast. Res/Comm demand is up 1.6 Bcf/d from a week ago. Supply declined by 0.3 Bcf/d due to lower production on the day. Bentek is reporting a storage injection of 105 Bcf for the week ended September 23. An injection of this level would beat the 5-year average by 28 Bcf and set the highest injection level of the year. Weather outlooks over the next ten days show temperatures in the East below normal, while the West is expected to experience continued hot temperatures, especially in the Pacific Northwest. The middle of October is forecasted to have broad warmth for most of the country.

 

Market Update 09 29 2022

Market Settles 09 28 2022

 

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