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Daily Market Update April 20, 2020

Early Morning Update

The May20 natural gas contract is trading down $0.03 at $1.72.  The May20 crude oil contract is down $6.57 at $11.70.

Summary

A new week begins and COVID-19 uncertainty remains the top story in the energy markets. As some states see “flattening of the curve”, other states continue to scramble to keep the virus under control, but the real question continues to be when and how will the economy begin to reopen. U.S. equities rose strongly last week on the “talk and hope” of an economic startup, and with U.S. West Texas crude futures hitting a 21-year low this morning, the damage may already have, unfortunately, been done. The short term weather forecasts for the eastern half of the country continue to look more like February and a lot less like May. The next couple days could yield some record low temperatures across the region, but forecasts do show a moderation to normal in the coming weeks. With a combination of pandemic impacts and low oil price, TX Q3 2020 pricing has dropped over 20% the last 45 days, but prices are starting to show signs of life again with an $8/MWh jump over the past week. 2021 NYMEX pricing continues to see a lot of action, with talk surrounding production cuts and producer solvency. Since hitting the all-time low price on March 6th @ $2.27, prices have steadily risen to $2.62 as of Friday’s close.

Market Update042020

Market Settles 041720

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