Daily Market Update November 15, 2019
Early Morning Update
The Dec19 natural gas contract is trading up $0.01 at $2.65. The Dec19 crude oil contract is up $0.03 at $56.80.
Summary
The 2019 natural gas storage-building season has come to an end, with the U.S. Energy Information Administration reporting that storage stockpiles rose just 3 Bcf during the week to November 8. This was far less than the 42 Bcf injection seen last year for the corresponding week, as well as the 30 Bcf five-year average. Storage levels stand at 3,732 Bcf, just 2 Bcf more than the 5YA, but 491 Bcf greater than where levels were last year at this time. Bentek Energy is projecting the first withdrawal of the upcoming winter season will be reported next week, a 90 Bcf withdrawal. After falling almost 19 cents this week on warmer temperature outlooks, December natural gas prices reacted bullishly to the storage news, regaining 4.7 cents to settle the day at $2.647/MMBtu. Demand has been falling this week, as the frigid temperatures of the last two weeks dissipate, and normal to above-normal temperatures warm the country. U.S. demand is expected to be 94.1 Bcf/d today, and average between 90 and 91 Bcf/d over the next two weeks.
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