Daily Market Update January 16, 2019
Early Morning Update
The Feb19 natural gas contract is trading up $0.09 at $3.59. The Feb19 crude oil contract is down $0.51 at $51.60.
Summary
After the prompt month climbed nearly 50 cents to start the week, Tuesday saw NYMEX pull back, with the February contract falling nine cents to close at $3.501/MMBtu, and the 12-month strip closed back below $3, after falling six cents to $2.988/MMBtu. Early on in the day, the prompt month was trading up nine cents, but reversed directions as overnight revisions to weather models suggested slightly warmer temperatures than previously forecasted for the back half of the second week. Production remains steady for now, but the anticipated severe cold across natural gas producing regions through the end of the month create the potential for wellhead freeze-offs to curb production just as ResComm demand is increasing.
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