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Daily Market Update April 17, 2019

Early Morning Update

The May19 natural gas contract is trading down $0.01 at $2.56. The May19 crude oil contract is up $0.33 at $64.40.

 

Summary

Tuesday proved to be another quiet day for NYMEX natural gas futures, as the prompt month contract lost 1.8 cents to close at $2.572/MMBtu. Since making its debut as the prompt, the May 2019 contract has lost $0.14 cents. With bearish conditions challenging the near-term, current prices could be close to the bottom, as some analysts believe prices could reach a $2.50 floor. U.S. dry natural gas production has been steady, averaging 86.6 Bcf/d for the month of April, 8.0 Bcf/d higher than April 2018. Mild, spring-like temperatures are forecast for the foreseeable future, leading to even lower demand. As a result, the year-over-year storage deficit is expected to be erased over the next two weeks. Tomorrow’s report from the U.S. Energy Information Administration is expected to be a ~95 Bcf injection, which compares to a 34 Bcf withdrawal reported this time last year. Calendar strip pricing was mostly unchanged yesterday, 2020-2023 are all between $2.67 and $2.75.

 

Market Update 041719

Market Settles 04162019

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