Natural Gas:
MARKET HOVERING AROUND $8.00
STRONG PRODUCTION NUMBERS BRING THE NATURAL GAS MARKET DOWN
- Production numbers remained strong last week, and the upcoming fall temperatures helped limit any growth in the market as the market dropped on Monday and hovered around $8.00
- Production topped 100 Bcf/d at points during the week, reaching highs for the year and easing concerns about supply/demand imbalance.
- Storage expectations are beginning to loosen up as the weather cooperates.
PJM BGE AUGUST 23RD
PJM BGE AUGUST 30TH
PJM ADHUB AUGUST 23RD
PJM ADHUB AUGUST 30TH
NATURAL GAS STORAGE REPORT
- Production reached 100Bcf a day at times this last week, which helped keep the market around $8.00 for the week, and we may see lower pricing this week with fall forecasts getting nearer.
- Rig counts for oil and gas continue to rise. Last year we had a total of 497 rigs, and we now have 760 rigs, including 162 dry gas wells. That is a 59% increase over last year and has helped record high production.
- The FERC calls for building more infrastructure pipelines in New England, which mainly relies on oil heating and LNG imports. If this infrastructure is completed, it will likely increase domestic demand and raise prices across the country, as we saw after large infrastructure pipelines were completed around 2018.
- Gazprom shut down the Nordstream 1 pipeline on August 30th for maintenance issues and has now refused to reopen the pipeline, citing pipeline leaks. Moscow is also saying that the pipeline will not resume at 100% capacity until western sanctions on natural gas are lifted. With the US already at full capacity minus Freeport, this did not affect domestic natural gas prices much, though EU prices went much higher.
SUMMER TEMPS REMAIN HIGH INTO MID-SEPTEMBER
