Daily Market Update February 21, 2017
Early Morning Update
The Mar17 natural gas contract is trading down $0.12 at $2.70. The Mar17 crude contract is up $1.00 at $54.40.
Summary
Ahead of the widespread warmth expected over the holiday weekend, the March prompt month dropped 2 cents to $2.834. The latest weather forecasts look to start March with a nationwide weather divide, showing a warmer than average East and colder than average West. This weekend also saw withdrawal season records of supply and demand set. Production hit a 2017 high of 71.3 bcf on Sunday, but has since fallen off slightly to 71.1 bcf. In contrast, U.S. demand set a winter-to-date low of 66.1 bcf on Sunday, depressed by the late spring-like temperatures seen across the entire country. Demand is expected to rise again through the next two weeks, while production is expected to stay stable around 71 bcf/d. These newly achieved supply and demand levels should help bolster the surplus to the five-year average natural gas storage numbers as we move closer to the end of withdrawal season.
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