Market Updates

Daily Market Update - January 11, 2016

Daily market update

Early Morning Update

The Feb16 natural gas contract is trading down $0.04 at $2.43.  The Feb16 crude contract is down $0.36 to $32.80.

Summary

For the second day in a row, natural gas prices rose, as the market reacted to increasing demand and a greater-than-expected pull from storage.  The latest weather updates from the National Weather Service show cold weather east of the Rockies sticking around a little longer than previously forecast, which translates to higher demand in the coming weeks.  The 113 Bcf weekly storage withdrawal reported last Thursday was much greater than anticipated, signifying a tighter market.  Well freeze-offs have been a problem for natural gas production recently, further squeezing supply.  On Friday, the Feb16 NYMEX natural gas contract climbed $0.09 to close out the week at $2.472/MMBtu, the highest settlement since Oct. 20.  Most market analysts, however, do not believe that the cold weather is enough to keep prices rallying.  Despite the freeze-offs, production is still just 2-3 Bcf/d off the old time record, and storage inventories are likely to be at an all-time high for the end of winter.

Market Update 011116

Market Settles 010816

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