Daily Market Update March 29, 2019
Early Morning Update
The May19 natural gas contract is trading down $0.01 at $2.69. The May19 crude oil contract is up $1.35 at $60.65.
Summary
The EIA reported a draw from storage of 36 Bcf yesterday, slightly higher than expectations, but the market shrugged off the news and closed the day nearly flat at $2.712. This draw looks to be the final draw of the year with an injections forecast for the following weeks. The market seems to be breathing a sigh of relief that storage didn’t end up worse than it did. And with production growing and mild weather on tap, we appear to be in a period of low volatility. This is a departure from last spring when March and April were cold and withdrawals extended long into what is typically injection season. Early estimates for end/summer storage show increasing confidence of a recovering storage situation. Estimates call for ~3.5 Tcf and for that to happen, production will need to continue to grow. A milder summer than last year would also help.
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