Market Updates

Daily Market Update - March 1, 2016

Daily market update

Early Morning Update

The Apr16 natural gas contract is trading down $0.01 at $1.70.  The Apr16 crude contract is up $0.55 at $34.30.

Summary

With virtually no fundamental support at this time, natural gas futures continued their slide yesterday, falling another eight cents to settle at $1.711/MMBtu.  The last bout of cool weather this week gives way to much warmer-than-normal temperatures next week, sapping demand in major markets that rely on gas for heating needs.  As heating demand dwindles and production remains close to record highs, more gas will be put into underground storage facilities, adding to an already abundant supply.  Some analysts are predicting a record end-of-season storage level, and it looks like we will be at either the highest or second highest post-winter level ever by the end of March.  According to the American Gas Association, only two of the 21 weeks since October 2015 have been colder than normal this winter, with every individual region of the country averaging higher-than-normal temperatures.  There have been 15.7% fewer heating degree days for the U.S. as a whole, while specific areas of the country were 8.5% to 22.3% warmer than historical norms.  This does not bode well for the bulls in the natural gas market, and the question being heard more and more frequently is, “How low can prices go?”

Market Update 030116

Market Settles 022916

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