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Daily Market Update February 8, 2017

Early Morning Update

The Mar17 natural gas contract is trading down $0.04 at $3.09.  The Mar17 crude contract is down $0.32 at $51.85.

 

Summary

Yesterday, the Mar17 NYMEX natural gas contract settled at $3.13/MMBtu, up eight cents for the day. After testing the strong $3.00 MMBtu support level when the prompt month  traded as low as $3.006 MMBtu on Monday, it was unable to break through and possibly gained support yesterday from bargain hunting and cooler temperatures that crept into near-term weather forecasts. Yesterday, the National Weather Service revised their 6-10 and 8-14 day outlooks more bearish, especially for the Northeast, the largest winter consumer of natural gas for heating demand. If forecasts for cooler temperatures prove true in the near-term, downside for prices could be limited. February 2017 U.S. dry natural gas production has averaged 70.4 Bcf/day, a 3.8 Bcf/day decrease compared to February 2016, despite recent reports of increased rig counts, also offering little support for downward price movements. Meanwhile, NYMEX calendar strips 2019-2022 continue to hover close to $2.90 MMBtu, offering nearly a 50 cent discount in 2019 to the 12-month strip, which is currently trading at $3.37/MMBtu.


Market Update 020817

Market Settles 020717

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