Market Updates

Daily Market Update - February 5, 2016

Daily market update

Early Morning Update

The Mar16 natural gas contract is trading up $0.07 at $2.04.  The Mar16 crude contract is down $0.12 at $31.60.

Summary

Yesterday, the U.S. Energy Information Administration reported a 152 Bcf withdrawal from storage inventories for the week to Jan 29, bringing the total amount of stockpiled natural gas to 2,934 Bcf.  This is 490 Bcf (20%) more than what was in storage last year at this time, and 445 Bcf (18%) more than the five-year average.  The Mar16 natural gas contract was trading just under $2.00/MMBtu before the weekly report came out, bounced higher on the news, but eventually settled at $1.972/MMBtu, down 6.6 cents day-over-day.  This is the first time the prompt month has settled below the $2.00 key technical trading point since Dec. 23.  Although the market remains very bearish overall, it has been difficult in the past to hold below $2.00 for any length of time.  However, with production near its all-time high, an abundance of gas in storage, and warmer-than-normal temperatures forecast for most of the country in the coming weeks, it appears that natural gas prices are headed that way.  Even technical trading indicators point to prices below the $2.00 level.  Support levels are seen at $1.96 and $1.75.

Market Update 020516

Market Settles 020416

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