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Daily Market Update February 22, 2019

Early Morning Update

The Mar19 natural gas contract is trading down $0.01 at $2.68. The Apr19 crude oil contract is up $0.79 at $57.75.

 

Summary

More than double the size of the previous week’s storage withdrawal, the U.S. Energy Information Administration reported a 177 Bcf decrease in natural gas storage inventories yesterday for the week to Feb 15. Although Bentek Energy’s prediction was right on the nose, the consensus of market estimates was a bit lower at 165 Bcf, while the 134 Bcf pull seen last year for the same week, as well as the -148 Bcf five-year average, were both much smaller. The deficit to last year grew to 4.1% (-73 Bcf), while the deficit to the five-year average now stands at 17.5% (-362 Bcf). The prompt month natural gas price rose 6.1 cents on the news, settling at $2.697/MMBtu. The succeeding months followed suit, with April up six cents, and May up a nickel. Total U.S. demand for natural gas has been declining this week, down to 110.2 Bcf/d today, and is expected to slip further over the weekend before bouncing back on Monday. Dry production continues to struggle, and is currently down to 85.0 Bcf/d today.

 

Market Update 022219

Market Settles 022119

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