Daily Market Update April 20, 2018
Early Morning Update
The May18 natural gas contract is trading up $0.02 at $2.68. The May18 crude contract is down $0.44 at $67.85.
Summary
The NYMEX NG market saw it’s biggest one day drop in weeks as the prompt month contract shrugged off a bullish storage report to finish the day down $.079 at $2.66. The EIA did report a larger-than-expected draw from storage of 36 bcf. More typical of this time of year is to see injections into storage so it’s a testament to the persistent cold weather that we are seeing significant withdrawals from storage, especially considering how strong NG production is. But weather forecasts are showing a moderation in temperatures along the east coast and we may actually start to see ‘normal’ temperatures starting in the next few days. I won’t complain.
Power prices in the eastern markets took a bit of a breather yesterday after marching steadily higher over the past 2 weeks. Cold temperatures and relatively high index pricing have pushed up pricing for subsequent winters.
Market Settles 041918
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