Daily Market Update January 3, 2017
Early Morning Update
The Feb17 natural gas contract is trading down $0.25 at $3.47. The Feb17 crude contract is up $1.23 at $54.95.
Summary
In the second day of trading the Feb17 natural gas contract as the prompt month, pricing fell another eight cents to close at $3.724/MMBtu. The 12-month strip is down three cents as well, but calendar strips further out into 2018 and beyond are staying steady. After a colder snap this upcoming weekend, weather forecasts for the second week in January have shifted from below average up to normal, and even slightly above. Low demand over the holiday period, as well as a steadier stream of ~71 Bcf/day production, is expected to result in a lower-than-average withdrawal for the week ending Dec. 29, which is scheduled to be announced on Thursday.
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