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Daily Market Update April 17, 2020

Early Morning Update

The May20 natural gas contract is trading up $.05 to yesterday’s close at $1.73.  The May20 crude oil contract is down $1.98 at $17.85. 

Summary

As a tribute to uncertainty plaguing the market, after spending most of the day in the red, the NYMEX HH prompt month contract rallied yesterday afternoon, settling at $1.587/MMBtu, 8.8 cents higher on the day. Gains were limited to near-term, 2020 contracts, as 2021 and beyond were mostly unchanged yesterday and were recorded regardless of a strong, 73 Bcf storage injection report from the EIA in the morning. Despite near-term prices moving higher during yesterday’s trading session, demand is estimated to drop ~14% in the next 8-14 days. In the coming months, however, most reports call for lower natural gas production levels, turning the supply/demand curve more bullish. Today, supply remains steady, dry US natural gas production has averaged 92.5 Bcf/d over the last seven days, but rig counts continue to diminish. Most expenditure cuts so far have been in more oil heavy plays, with crude still priced in the mid to low $20s/barrel.

Market Update041720

Market Settles 041620

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