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Daily Market Update March 27, 2019

Early Morning Update

The Apr19 natural gas contract is trading down $0.05 at $2.69. The May19 crude oil contract is up $0.01 at $59.95.

 

Summary

NYMEX continued its calm streak through Tuesday, as the prompt month natural gas contract and 12-month strip both moved down about a penny and a half to close at $2.74/MMBtu and $2.916/MMBtu, respectively. Beyond the near term, the 2020 and 2021 calendar strips both remained flat and backwardated, with movement measured in the hundredths, closing at $2.762/MMBtu and $2.659/MMBtu. The April contract will expire as the prompt month today, with May rolling into the lead spot on Thursday. Yesterday, production climbed back near its record high from the weekend to 87.7 Bcf/d and is expected to fall about 1.0 Bcf/d today, with the reductions spread across multiple regions. With the timely transition to spring temperatures, tomorrow’s EIA Natural Gas Storage Report is projected to show the last withdrawal for the season, currently estimated at 28 Bcf. If projections hold, this will have us entering the injection season a month earlier than last year, albeit at a sizable deficit of 166 Bcf.

 

Market Update 32719

Market Settles 32619

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