Daily Market Update February 17, 2017
Early Morning Update
The Mar17 natural gas contract is trading up $0.02 at $2.87. The Mar17 crude contract is down $0.28 at $53.08.
Summary
The NYMEX prompt month finished down $.071 to close the day at $2.854. The EIA reported a draw from storage of 114 bcf, which was below last year’s draw of 136 bcf, and the five year average of 156 bcf. The report was below the estimates which were in the mid-120’s. Weather forecasts have indicated that the majority of the US will be seeing above normal temperatures, which could continue through the end of the heating demand season. The forecasts and lower storage withdrawals have been main factors for the downward trend of NG prompt month prices. With the warm weather trends, storage withdrawals for the upcoming weeks are trending below historic averages. The latest round of estimates for end-of-season storage call are approaching 2.0 Tcf, above the 5-year average but below last year.
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