Daily Market Update March 1, 2017

Early Morning Update

The Apr17 natural gas contract is trading up $0.03 at $2.80. The Apr17 crude contract is up $0.29 at $54.30.

Summary

After trading as low as $2.653/MMBtu earlier in the day, the Apr17 NYMEX natural gas contract rallied to close at $2.774/MMBtu yesterday, up 8.1 cents on the day. The National Weather Service revised their 6-10 and 8-14 day outlooks yesterday, predicting an even more bearish outlook for the next two weeks. Previous versions of the 8-14 day outlook had predicted colder-than-average temperatures in the Northeast. However, yesterday’s revisions removed the chance of cold from the Northeast, and now predict warmer-than-average temperatures blanketing the country with a chance of colder temperatures confined to the Northwest. With fundamentals mostly unchanged, technical trading and bargain hunting likely induced yesterday’s rally after Monday’s losses.

Market Update 030117

Market Settles 022817