Settlement – Today marked the second last trading day of the August contract as the NYMEX prompt month and it was packed with excitement. Shortly before 8:30AM EST this morning, prices rallied to a high of US$9.752, which is $0.759 up from yesterday’s settle. The overall trading range spanned over $1, highlighting the volatility that can happen within a day. The good news though is that prices continued to trend downwards after the peak, as opposed to oscillating within the range.
Fundamentals – A couple of factors asides from traders trying to make some intraday gains can be attributed to pricing today. For one, yesterday’s drop in LNG feedgas demand at Sabine Pass was a false alarm, and not foreshadowing of maintenance as volumes recovered this morning. The most recent weather revision has hotter temperatures extended further into the beginning August, although Toronto here is feeling some relief. Lastly, as per usual, production is trending downwards from the weekend highs. ~CL