Market Updates

Daily Market Update - February 3, 2016

Daily market update

Early Morning Update

The Mar16 natural gas contract is trading flat at $2.02.  The Mar16 crude contract is up $0.52 at $30.40.

Summary

Abundant supply and the expectations of limited heating demand continue to pressure natural gas prices.  The Mar16 contract fell another 12.7 cents yesterday, settling at $2.025/MMBtu, just short of the $2.00 key technical trading point.  The value of natural gas has dropped almost 12% in just the past two days, the largest two-day drop in three months.  While mid-range weather outlooks show below-normal temperatures across most of the eastern half of the country, a good chunk of the Northeast will be spared, which is likely to limit the impact of the cold weather to the overall heating demand.  Without any exceptional heating demand for natural gas, high storage stockpiles left over from last year should keep the market oversupplied and, thus, prices low.  As seen last year, very cold weather in February could easily make up for a warm December, but that doesn’t seem to be in the cards this year.  It’s looking more and more like we will make it through what was supposed to be the coldest part of the winter without any significant cold weather.

Market Update 020316

Market Settles 020216

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