Market Updates

Daily Market Update - February 29, 2016

Daily market update

Early Morning Update

The Apr16 natural gas contract is trading down $0.09 at $1.70.  The Apr16 crude contract is up $0.12 at $32.90.

Summary

Natural gas fundamentals remain extremely weak as the market turns its attention from winter to spring, with lighter demand and a slow down to the amount of gas removed from storage.  The Apr16 natural gas contract, which made its debut in last week’s closing session, made only marginal gains, settling at $1.791/MMBtu on Friday.  Starting next weekend, above-normal temperatures are forecast across most of the U.S., with possible record high temperatures for this time of year.  The warm-up is expected to last at least through the middle of March.  With unseasonable warm weather on tap, demand for natural gas should be limited, as well as storage withdrawals for the remainder of the season.  Bentek Energy is projecting pulls from inventories in the double digits for the next three weeks, totaling more than 300 Bcf less than last year for the corresponding three weeks, and about 170 Bcf less than the five-year averages.  Last week saw the first LNG exported from Sabine Pass, a milestone in the North American natural gas industry.  The export of U.S. shale gas to global markets should help balance the market this upcoming summer, but analysts are trying to determine if it will be enough to avoid a glut of natural gas in the coming months.

Market Update 022916

Market Settles 022616

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