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Daily Market Update December 18, 2019

Early Morning Update

The Jan20 natural gas contract is trading down $0.05 at $2.27.  The Jan20 crude oil contract is down $0.39 at $60.55.

Summary

There was fairly little movement in NYMEX yesterday, as trading remained focused on the winter as the January through March 2020 strip traded down just over two cents. The drop was likely spurred on by revised weather forecasts that now show the first week of January at normal to slightly above-normal temperatures for the Northeast. All forward calendar strips remained flat and near their all-time lows. Production is down to under 91 Bcf/d, just as residential and commercial demand has ramped up 16 Bcf/d from over the weekend due to the cold temperatures across the Northeast. However, the market seems to be looking past this, as next week’s forecast shows well-above-average temperatures that would lessen residential and commercial heating demand around the holidays. Tomorrow’s EIA Natural Gas Storage Report is expected to show a withdrawal of 92 Bcf, which would be lower than both last year and the 5-yr average.

Market Update121819

Market Settles 121719

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