Daily Market Update April 3, 2019
Early Morning Update
The May19 natural gas contract is flat at $2.67. The May19 crude oil contract is up $0.01 at $62.59.
Summary
Another quiet day on the NYMEX as the May19 prompt month traded 2.4 cents lower than Monday’s settlement ending the day at $2.684/MMBtu. Despite exiting storage withdrawal season with only 1,107 Bcf of gas stockpiled, a near-record low level, the near-term outlook has moved cautiously bearish over the last week and a half. Last week, US dry natural gas production moved back to record setting levels, hitting 88.3 Bcf on Friday, and demand is forecast to wane due to warmer, seasonal temperatures. If weather outlooks change colder, prices could move the other direction, but for now, weather vendors are in agreement that the next two weeks days should bring low demand for natural gas across much of the country. Longer-term prices remained mostly unchanged yesterday. Cal strips 2020-2023 trading within ten cents of each other between $2.65 and $2.75.
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