Daily Market Update January 15, 2019
Early Morning Update
The Feb19 natural gas contract is flat at $3.59. The Feb19 crude oil contract is up $0.76 at $51.27.
Summary
The market remained solidly weather-driven on Monday, as colder forecasts brought the largest prompt month jump since November. The February 2019 contract rose 49 cents to $3.591, the 12-month strip gained 15 cents to $3.051, 2020 ticked up less than 2 cents to $2.766, and 2021 stayed flat to $2.665. The near-term weather forecast turned much colder over the weekend, showing the country swathed in temperatures which, in some areas, are close to 15 degrees below normal. A strong Nor’Easter is on the way to the east coast this weekend, with snowfall totals expected to be anywhere from 6 to 18 inches. This is expected to usher in much colder air for the remainder of the month, putting an upward pressure on demand levels that have been moderate as of late. Production has remained steady at 85 bcf/d, which may allow for the year-over-year deficit to shrink more over the coming weeks.
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