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Daily Market Update December 27, 2019

Early Morning Update

The Jan20 natural gas contract is trading up $0.06 at $2.33.  The Jan20 crude oil contract is down $0.55 at $60.63.

 

Summary

A late year surprise rally yesterday as the prompt month traded up $.122 to close at $2.294 (of course most of that is being given back this morning).  Slightly ‘less-warm’ forecasts showed up and the market ended up ticking higher.  This morning, the forecasts are back to being… smoldering.  Warm temps are expected for much of the country for the next two week (at least).  This will bring lower demand, making it difficult to find price support for either gas or power.  
The EIA will release the weekly storage report.  Last week was cold so expect a large draw this week - the latest estimates call for a draw near –170.  This is much larger than last year (-61) and the 5-year average (-101).  
Expect poor liquidity again today, with things slowly returning to normal next week.  

Market Update122719

Market Settles 122619

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