Daily Market Update April 12, 2018
Early Morning Update
The May18 natural gas contract is trading up $0.01 at $2.68. The May18 crude contract is down $0.12 at $66.70.
Summary
Following weeks of late season cold across the Northeast, temperatures are expected to ratchet up today into much above-normal territory and remain above normal through the weekend. Looking beyond this weekend, forecasts indicate another strong cold front is expected to push down from Canada at the start of next week, causing a return to below-normal conditions in the 6-10 day window, and extending through the balance of April. The market appears to be looking for direction, as traders ponder the impacts of late season heating demand, which is largely being offset by growing production. The May’18 NG contract is trading at the lower end of the recent trading range, settling up 1.9 cents in trading on Wednesday, at $2.675. The market is expecting a 12 Bcf withdrawal from storage when the EIA releases their storage report later this morning. Estimates for next week’s number indicate a withdrawal of 20 Bcf, which is expected to be the last withdrawal of the winter season before we start restocking inventories in preparation for next winter.
Loading please wait...