Daily Market Update March 26, 2019
Early Morning Update
The Apr19 natural gas contract is trading flat to yesterday’s close at $2.75. The May19 crude oil contract is up $1.18 at $60.00.
Summary
The market made little to no movement on Monday, as fundamentals remained relatively in balance with last week. All terms moved less than a cent, with the prompt month and 12-month strips ticking slightly up, and all other terms after March 2020 moving just a bit down. Coming off of the brand new record high production, supply moved down just a bit nationwide, but continued to surge in the Permian region, hitting a new high of 9.4 Bcf/d on Monday. This continues to put strain on transportation out of the region and exacerbates the low, sometimes even negative, local gas prices that result from the supply glut. Across the country, demand recovered slightly over the weekend and is expected to stay a bit elevated through the week as colder weather lingers in the midcontinent during the transition into April. Both East and West Coasts look to be slightly above normal during this time, so the overall effect on demand likely will remain minimal.
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