A micro natural gas futures and options contract will begin trading on November 6th. The micro contract size will be 1,000 mbtu (million British Thermal Units). The current natural gas contract is 10,000 mbtu, and the mini-contract is 2,500 mbtu.
Highlights
The Panama Canal Authority said a surcharge for water use it had applied to conserve water during a prolonged drought will be reduced starting in October.
The waterway has imposed a series of restrictions this year, including the maximum number of vessels allowed to pass per day and the ships’ authorized draft to conserve water as the drought is predicted to extend into 2024. The water surcharge was first imposed in 2020.
In October, the canal’s customers will see a reduction of about 50% in the variable component of a tariff for fresh water use.
The amount of crude oil in the Cushing, Oklahoma, crude oil hub has declined to 22 million barrels this week, which is considered close to the minimum operating level, aka pipeline supplies. That news spiked crude oil up $3+ yesterday. However, on Tuesday, the American Petroleum Institute (API) reported a build of 1.586 million barrels in US crude oil inventories after a draw-down of 5.25 million barrels the previous week. The market had expected an inventory draw of 1.650 million barrels for the previous week. Analysts are split in their opinion as some see a serious correction coming while others say we are on our way $100 yet this year and some even see $150 in 2024.