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Daily Market Update November 25, 2019

Early Morning Update

The Dec19 natural gas contract is trading up $0.05 at $2.62.  The Dec19 crude oil contract is up $0.06 at $58.64.

  

Summary

On Friday, the December 2019 NYMEX natural gas futures price rose 9.8 cents on the day to settle at $2.665/MMBtu in reaction to some cooling to the weather forecast. Today is the penultimate day for December 2019 to trade, and, as of this morning, the market has completely erased those gains. Last week, the EIA reported the first withdrawal of the season of 94 Bcf, which was larger than expected. However, it seems that the bullish withdrawal was overshadowed by the weather forecasts. Warmer-than-normal temps are forecasted for this holiday week, covering the majority of the eastern half of the country. The cooler-than-normal temps remain to the west. However, over the weekend, the 6-10 day forecast cooled dramatically for the Northeast, a major U.S. demand center for natural gas. This could result in an uptick in heating demand to start off the month of December. U.S. dry production remains at healthy levels, averaging just over 92.0 Bcf/d this month. Production seems to be keeping a lid on pricing for now, with the possibility for a backloaded winter showing potential for cold late Jan into Feb.

Market Update112519

Market Settles 112219

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