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Daily Market Update January 23, 2019

Early Morning Update

The Feb19 natural gas contract is trading up $0.09 at $3.13. The Feb19 crude oil contract is up $0.29 at $53.30.

 

Summary

Amid frigid temperatures attributing to high natural gas demand and lower supply, likely due to production well freeze-offs, interestingly, the NYMEX NG prompt month lost 44.2 cents yesterday, settling at $3.04/MMBtu. Although cold weather is far from over, the ~20 degree below normal temperatures in northeast U.S. demand centers are behind us, according to the 15-day outlook, and demand is expected to drop about 10% from the weekend highs for the balance of the month.  An explosion at the TETCO M2 Berne compressor station in Southwest Ohio Monday night resulted in a Force Majeure being called and southbound gas flows were cut by more than 1.0 Bcf/d. Initial reports indicate Northeast production shut-ins due to maintenance, with no estimated return-to-service date. Explosions in the past have taken months to complete maintenance to repair the infrastructure.

 

Market Update 012319

Market Settles 012219

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