Daily Market Update December 30, 2019
Early Morning Update
The Feb20 natural gas contract is trading down $0.01 at $2.22. The Feb20 crude oil contract is up $0.38 at $62.10.
Summary
The Jan ‘20 NYMEX NG contract took a nosedive on its final day of trading, moving down $.136 to expire at $2.158. The Feb ‘20 contract is now the prompt month. Weather forecasts continue to show milder temps this week as this weather pattern that has been bringing above average temperatures remains in place. With these milder temps, demand has been down and index prices have also been low, with prices more common for shoulder season that for winter.
On Friday, the EIA did report a slightly larger-than-expected draw of 161 Bcf The report did little to influence the market as traders remain focused on the warmer temps and lower demand that is currently being forecasted. Liquidity is likely to remain poor today and tomorrow with the market slowly coming back to life on Thursday.
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