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Daily Market Update April 2, 2018

Early Morning Update

The May18 natural gas contract is trading flat to Thursday’s close at $2.73. The May18 crude contract is down $0.54 at $64.40.

 

Summary

On Thursday, the NYMEX natural gas futures price for May crept 3.5 cents higher on the day to settle at $2.733/MMBtu. Throughout the day, the prompt month was rangebound between $2.698 and $2.764, and is still depressed in comparison to where May 2017 settled at $3.142. April has begun with another blast of cold enveloping the Northeast, triggering some late season heating demand for natural gas. The 1-5 and 6-10 day weather forecasts for the shoulder month have taken a turn to colder-than-normal temperatures for the majority of the eastern and central portions of the country. The EIA reported a storage withdrawal for the week ending March 23rd of 63 Bcf, just shy of the 71 Bcf market consensus. Total U.S. demand for natural gas is anticipated to average 71 Bcf/d over the next week, which is much lower than demand levels in March. U.S. production remains healthy, averaging around 78 Bcf/d. Even though expectations are for a 7% increase in production levels this summer, there is still some concern in the market regarding the upcoming refill season, and whether this growth in production will be enough to replenish storage before next winter.

 

Market Update 040218 

Market Settles 032918

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