Daily Market Update March 15, 2019
Early Morning Update
The Apr19 natural gas contract is trading down $0.03 at $2.82. The Apr19 crude oil contract is down $0.44 at $58.17.
Summary
The prompt month contract ticked up slightly yesterday to close at $2.855, up $.035 on the day. The rise came after the EIA reported a draw from storage of 204 Bcf, very large for this late in the season yet was in-line with estimates after very cold conditions for much of the country last week. Estimates for the next few weeks tell a very different story as temperatures have moderated considerably with the next three reports calling for –45, -43, +8. All that add up to an end of winter storage total of roughly 1.1 Tcf. This is an improvement over estimates as recent as last week, which showed end/winter storage totals approaching 1.0 Tcf. Either way, the storage total exiting winter will be poor and leave us with a lot of ground to make up over the injection season. ICE markets show end/summer storage totals slightly less than 3.5 Tcf. This implies a strong injection season, which will need production growth to reach those targets.
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