Daily Market Update February 12, 2018
Early Morning Update
The Mar18 natural gas contract is trading down $0.01 at $2.57. The Mar18 crude contract is up $1.00 at $60.20.
Summary
On Friday, the NYMEX natural gas futures price for March plummeted another 11.3 cents on the day to settle at $2.584/MMBtu. According to the EIA, last week’s colder weather bolstered heating demand for natural gas, pushing the total U.S. residential and commercial consumption levels up about 20%. This increase in demand is expected to result in a larger-than-normal withdrawal from storage for the week ending February 9th. Early estimates for this upcoming storage report range up into the 180s. Weather forecasts are showing warmer-than-normal temperatures for the majority of the eastern half of the country, a major demand center in the U.S. for natural gas. With moderating weather forecasts through the end of February, expectations for the end-of-season storage inventories have bumped back up to 1.38 Tcf. Despite finishing winter in deficit to last year and the five-year average, end of summer levels look to be pretty close to normal heading into next winter.
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