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Daily Market Update December 9, 2019

Early Morning Update

The Jan20 natural gas contract is trading down $0.10 at $2.23.  The Jan20 crude oil contract is down $0.90 at $58.30.

    

Summary

On Friday, the January 2019 NYMEX natural gas futures price fell 9.3 cents on the day to settle at $2.396/MMBtu, following the EIA reporting a less-than-expected withdrawal from storage. The 19 Bcf withdrawal was about 30% less than last year, and about half of the five-year average. After reaching a fresh all-time high at the end of November, U.S. dry production has come off slightly, averaging just over 92.0 Bcf/d so far this month. LNG and exports to Mexico continue to push higher, as new trains are built and pipelines completed. LNG is expected to break above 8.0 Bcf/d today, which would be a new record. Over the weekend, weather forecasts warmed dramatically, with the biggest changes coming later this week, erasing the blanket of cold that was expected for the majority of the country. Last week, there was concern for the cold that was expected for the Northeast, which is a major U.S. demand center for natural gas. However, with the warmer forecast, that seems to be completely erased. As of this morning’s forecasts, it seems the warmth along the East is expected to remain through the holidays. The warming forecasts have also lead to a huge drop in Res/Comm demand and may remain depressed through the end of the month.

Market Update120919

Market Settles 120619

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