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Daily Market Update November 12, 2019

Early Morning Update

The Dec19 natural gas contract is trading up $0.02 at $2.66.  The Dec19 crude oil contract is up $0.34 at $57.20.

  

Summary

Despite demand jumping 11 Bcf/d higher due to the widespread below-normal temperatures, the natural gas 12-month strip weakened nearly seven cents yesterday, erasing most of last week’s gains. The strip’s current price of $2.50/MMBtu is still about 13 cents more expensive month-over-month. The December contract was the biggest loser of the bunch, shedding more than 15 cents from Friday’s close at $2.637. The January – March strip came in a close second, weakening about 12 cents. Much of this market softening can be attributed to the most recent 11-15 forecast, which covers the first week of December. The temperature forecast for this term shows a dramatic shift from the current below-normal temperatures towards temperatures that are 3-5 degrees above normal for the majority of the country. Thus, market participants may be selling off their contracted length. Natural gas prices may continue to weaken if more warm forecasts are released for December.

Market Update111219

Market Settles 111119

 

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