Market Updates

Daily Market Update - January 12, 2016

Daily market update

Early Morning Update

The Feb16 natural gas contract is trading down $0.07 at $2.33.  The Feb16 crude contract is down $0.54 to $31.95.

Summary

With weather forecasts implying only limited increased demand due to the cold, February natural gas futures resumed their downtrend yesterday, losing 7.6 cents and settling at $2.396/MMBtu.  Despite cold weather giving rise to the largest storage pull of the season, natural gas stockpiles remain at a very healthy level heading into the latter half of the withdrawal season.  Continuing cold weather is expected to support another strong decrease in storage levels for the week to Jan. 8, although much less than last year for the same week, but still in line with the five-year average.  Data from the U.S. Commodity Futures trading Commission showed that managed money traders reduced their net short position to its lowest since back in September.  Short-covering has been ongoing in the natural gas market since “smart” money traders posted a record short position in the week to Nov. 3, 2015.  Short-covering tends to result in price gains, and probably partially contributed to the recent rally in natural gas prices.  However, some analysts believe managed money’s smaller short position reduces the potential for an overreaction if fundamentals turn bullish.

Market Update 011216

Market Settles 011116

Set your ZIP code and utility

Enter a valid ZIP code
Unfortunately, we don't currently service this area. Please try another ZIP code.

Loading please wait...

Don't see your utility?

We currently only provide service to the listed utilities. For question, please contact 1-888-925-9115.

Loading...

54.162.165.158