Daily Market Update February 10, 2017
Early Morning Update
The Mar17 natural gas contract is trading down $0.13at $3.00. The Mar17 crude contract is up $0.86 at $53.86.
Summary
A quiet day on the NYMEX as the prompt NG contract finished up $.015 to close the day at $3.141. The EIA reported a –147 draw from storage but at the same time, reclassified 5 Bcf of gas, with the net effect being a –152 draw, exactly in-line with estimates. The market opened the day up $.04 but very slowly slid throughout the day, at one point reaching $3.11 before rebounding slightly. Weather forecasts are still indicating above-average temperatures for most of the country through the end of February. This has raised end-of-season storage estimates to roughly 1.82 Tcf. However with weak production levels continuing, early end-of-summer estimates are falling below 5-year averages at 3.6 Tcf. The prospect of going into next winter with storage levels below historic averages has been keeping the Cal ‘18 elevated relative to Cals ‘19-’23.
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