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Daily Market Update January 31, 2018

Early Morning Update

 

The Mar18 natural gas contract is trading down $0.13 at $3.07.  The Mar18 crude contract is down $0.20 at $64.30.


 

Summary

During its first day as prompt month, the March 2018 natural gas contract gained a modest 2.8 cents to finish the day at $3.195/MMBtu, representing the contract’s highest settlement price since 11/12/2017, when it settled at $3.262/MMBtu. Near-term weather outlooks have fluctuated over the past few weeks, resulting in near-term natural gas volatility. Primarily weather-driven natural gas demand has averaged ~103 Bcf/d for January 2017, more than 10% higher year-over-year. However, abetting the supply/demand balance, natural gas production has returned to record-setting levels. Monday’s estimated production was 78.1 Bcf/d, a new all-time high. The next two weeks’ storage reports are expected to be less than the 5-year average, gaining ground against the current 12% deficit. Weather permitting, February storage draws could be limited if growth in natural gas production continues.

 

 

Market Update 013118 

Market Settles 013018

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