Market Updates

Daily Market Update - April 7, 2016

Daily market update

Early Morning Update

The May16 natural gas contract is trading up $0.05 to $1.96.  The May16 crude contract is down $0.30 at $37.45. 

Summary

May16 natural gas futures extended losses yesterday as the market anticipates the U.S. Energy Information Administration’s weekly storage report, which will be released at 10:30 this morning.  The prompt month fell 4.3 cents, settling at $1.911/MMBtu.  The storage report will cover the week to April 1, which is considered the last week of the titular withdrawal season, and estimates range from a zero to a 13 Bcf injection, with consensus formed around an 8 Bcf addition to natural gas stockpiles.  If the consensus is realized, this would put storage at an all-time end-of-season high level of 2,476 Bcf, just edging out the 2,473 Bcf recorded on March 31, 2012.  According to data from the National Oceanic and Atmospheric Administration, there were 14.8% fewer heating degree days than last year and 18.3% less than normal for the reporting week to April 2.  With weather becoming milder and so much gas in storage already, downward pressure on natural gas prices should continue, at least until we see some significant demand side increase and further production declines, which should help to better balance the market.

Market Update 040716

Market Settles 040616

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