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Daily Market Update February 13, 2018

Early Morning Update

The Mar18 natural gas contract is trading up $0.06 at $2.61.  The Mar18 crude contract is down $0.54 at $58.75.

 

Summary

March 2018 natural gas futures moved down another 3.2 cents on Monday to $2.552/MMBtu, reinforcing the 20% drop this contract has seen since it took over as the prompt month in late January. The 12-month strip, calendars 2019 and 2020 all lost about a cent, and settled at $2.74, $2.76, and $2.77, respectively. The next three weeks of weather should keep the eastern half of the country at or above normal temperatures, while the West Coast will feel slightly colder than average. Despite the potential moderation of weather, the market will have to battle through the large storage deficit and higher year-over-year demand to get through the remaining part of the winter season unscathed. Nationwide demand for 2018 to date is 13% higher than 2017, which has been the chief driver in quickly waning natural gas stores. However, despite strong withdrawals this winter, projected production efficiencies and additional pipeline capacity expansions in the Marcellus region could keep the market in check.

 

Market Update 021318 

Market Settles 021218

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