Daily Market Update April 9, 2019
Early Morning Update
The May19 natural gas contract is down $.01 at $2.69. The May19 crude oil contract is down $0.18 at $64.22.
Summary
After last week’s trading inactivity, the May natural gas contract was subjected to some upward movement yesterday. Coming out of Friday’s close at $2.664, which was flat week over week, the prompt month gained almost five cents throughout Monday before closing at $2.708. In fact, all the individual monthly gas contracts within the twelve-month strip followed this same trend. While weather forecasts for the rest of this week have shifted towards warmer temperatures for much the east coast, prices may be climbing in expectation of the cold front that’s forecasted to hit the Midwest midweek. The recent strength could also be a reaction to the slip in production over the weekend that caused output to slide from 88bcf/d to 86bcf/d. Further, trading activity could be picking up simply because summer is approaching. However, the longer-term gas contracts seem to be unfazed by the changes in the short-term market, as calendar strips ’21, ’22, and ’23 moved very little yesterday.
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