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Daily Market Update December 11, 2019

Early Morning Update

The Jan20 natural gas contract is trading up $0.02 at $2.28.  The Jan20 crude oil contract is down $0.24 at $59.00.

    

Summary

After setting an all-time low on Monday at $2.23/MMBtu, the January 2019 NYMEX natural gas contract hinged on near-term weather outlooks, settled at $2.264/MMBtu yesterday, 3.2 cents higher. Near-term contracts weren’t the only ones to set all-time trading lows recently. Calendar 2020-2022 hit new lows on November 29 at $2.268, $2.414, and $2.438, calendar 2023 at $2.481 hit a low on Friday, and calendars 2024 and 2025 set lows on Monday at $2.530 and $2.573, respectively. A cold front moving through the Midwest into the Northeast dropped temperatures about 20 degrees from Monday’s highs and drove a move higher for all NYMEX natural gas futures. The cold front, coupled with increases in LNG exports, spiked total demand from 99.3 Bcf on Monday to an estimated 120.4 Bcf today. Looking ahead, the National Weather Service drastically revised their 6-10 day outlook, cancelling plans for warmer-than-normal temperatures along the East Coast, to now predicting below-normal temperatures for the Northeast and pockets of below-normal temperatures in the South Central, Great Lakes, and Rocky Mountains. The 8-14 day outlook still calls for above-normal temperatures to blanket the United States.

Market Update121119

Market Settles 121019

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