Daily Market Update April 13, 2018
Early Morning Update
The May18 natural gas contract is trading up $0.01 at $2.70. The May18 crude contract is up $0.11 at $67.18.
Summary
Another very quiet day on the NYMEX with the prompt month settling higher by $.011 to close at $2.686. Long-term prices didn’t see much movement either as the cals barely moved. The EIA reported a draw from storage of 19 bcf, in-line with expectations but that there was a draw at all is a testament to the strength of this ongoing cold. We’re even expecting a small draw next week before injections (finally) begin. The cold since March has been strong enough to cause enough significantly higher heating related demand compared to a year ago, currently 8.3 bcf/d higher. That’s enough to offset the sharply higher Y-o-Y NG production. Once warmer weather arrives (maybe, hopefully, please…?) demand should slacken and the strong production should lead to good injections into storage.
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