Daily Market Update April 4, 2018
Early Morning Update
The May18 natural gas contract is trading up $0.02 at $2.72. The May18 crude contract is down $1.36 at $62.15.
Summary
With little change to market fundamentals, the NYMEX May 2018 natural gas contract increased a modest 1.4 cents yesterday to settle at $2.697/MMBtu. U.S. dry natural gas production remains high at ~78 Bcf/d, and expectations call for growth to 80 Bcf/d in 2018. Although lingering heating demand due to below-average temperatures in the Midwest and Northeast allows for higher residential and commercial demand year-over-year, the market does not seem to be as concerned with temperatures as we are technically in the shoulder season. The next weather risk is anticipated to be the upcoming summer. Summer outlooks from vendors should begin popping up in the market later this month. Until then, we may see continued relative quiet in the marketplace.
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