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Daily Market Update December 5, 2019

Early Morning Update

The Jan20 natural gas contract is trading up $0.03 at $2.43.  The Jan20 crude oil contract is up $0.17 at $58.60.

    

Summary

After the January NYMEX prompt month contract rally earlier this week, we are now experiencing some relief, as the prompt month shed 4.2 cents during yesterday's trading and ultimately settled at $2.399/MMBtu. This loss is most likely due to the very bearish 1-5 day weather outlook, where significantly warmer-than normal temperatures are forecast in Texas and the Mid-con region. That warmth is quickly erased in the 6-10 day forecast, though, as a cold front is expected to blanket the Mid-continent by the second week of December. Future calendar strips were unphased by the revised weather outlook and remained flat during yesterday's trading session. Later on this morning, the EIA will release their weekly natural gas storage report, where a 21 Bcf withdrawal is expected by the market. This is much less than both last year (-62) and the 5 year-average (-41).

Market Update120519

Market Settles 120419

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