Daily Market Update December 22, 2017
Early Morning Update
The Jan18 natural gas contract is trading up $0.03 at $2.63. The Feb18 crude contract is down $0.32 at $58.04.
Summary
The market continued it’s downward trend yesterday, falling another $.039 to close at $2.598. Cal ‘18 and ‘19 were also down yesterday, but the greater move in ‘18 widened the spread to ‘19, putting the market firmly in contango. The EIA did report a larger-than-expected draw of 182 Bcf. While the draw was a bit higher than the consensus of estimates, it was within the range and the market saw little reaction. The downward trend remains somewhat surprising given all the cold temperatures that are being forecast into early January. Heating related demand, which has been low for December-to-date, should start to increase as temperatures fall.
Happy Holidays!
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