Daily Market Update March 22, 2019
Early Morning Update
The Apr19 natural gas contract is trading down $0.04 at $2.77. The May19 crude oil contract is down $0.79 at $59.19.
Summary
A very quiet day on the NYMEX with the prompt monthly ending the day essentially flat, up $.001 to close at $2.821. This after a draw from storage of 47 Bcf was reported. The draw was in-line with expectations and left the US with 1,143 Bcf of total storage. Estimates for the next two weeks call for draws of 35 and 21 Bcf. With the remaining draws from storage for withdrawal season, the US will have the lowest storage total since the 2013/2014 winter, and the 2nd lowest in over a decade. We’ll need NG production to continue to move higher if we’re to re-fill storage to an acceptable level prior to next winter. Production has already started to grow and we’re now approaching 87 Bcf/d. Estimates have called for 90 Bcf/d in 2019, and we’ll need that considering all the new export terminal demand coming on-line throughout the year.
As far as weather goes, milder conditions look set for the next two-three weeks, and with that, perhaps some lower demand.
Loading please wait...