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Daily Market Update November 21, 2017

Early Morning Update

The Dec17 natural gas contract is trading down $0.02 at $3.03.  The Jan18 crude contract is up $0.08 at $56.50.

 

Summary

The natural gas market crept lower on Monday, influenced by relatively normal weather and record-breaking production forecasts. The prompt month lost five cents on the day to settle at $3.047/MMBtu, while Cal’18 lost nearly 2 cents to $3.037. Outer calendar years lost less than a cent or remained flat. Most of the country is expecting to experience above-normal temperatures in the short term forecast, but the Northeast still holds on to slightly colder temperatures through the 14-day forecast. After that, normal temperatures look to reign in the largest gas demanding region. Total gas demand for the U.S. is over 9.0 Bcf/d higher than 2016 month-to-date, but new production expectations are helping to stymie the flow of gas out of storage. Dry production estimates for the next two weeks are close to 76 Bcf/d, over 4.0 Bcf/d higher than 2016. Rig counts are up over 50% year-over-year, showing at least a more steady source of supply for the upcoming winter months.

 

Market Update 1121 

Market Settles 112017

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