Daily Market Update November 30, 2018
Early Morning Update
The Jan19 natural gas contract is trading down $0.08 at $4.56. The Jan19 crude contract is down $0.90 at $50.55.
Summary
More market volatility as the NG prompt month contract (now Jan ‘19) traded in a $.22 range before ending the day down $.053 to close at $4.646. The market dropped sharply after the EIA reported a smaller-than-expected draw from storage of 59 Bcf, but rebounded and ticked higher throughout the afternoon. Weather forecasts have also been volatile with the latest showing a brief warm-up this weekend followed by another round of below-average temperatures. The colder temps are drawing storage levels down and the latest estimate for end/winter forecasts storage levels to be ~1.33 Tcf. Looking ahead, estimates for the next three weeks of reports are –68, -60 and –95. The forecasted deficit after those draws would then be 19%.
Market Settles 112918
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