Daily Market Update April 30, 2020
Early Morning Update
The Jun20 natural gas contract is trading down $0.01 at $1.86. The Jun20 crude oil contract is up $1.94 at $17.00.
Summary
The June NYMEX contract made its prompt month debut yesterday by losing almost eight cents and closing the day at $1.869/MMBtu. The majority of the movement prevailed at the front of the curve, with Q3 '20 also losing eight cents, and the 12-month strip losing about a nickel day-over-day. This weakness lost its steam, though, further down the curve, with Cal '21 losing just a penny and Cal '22 and beyond remaining basically flat. The heat wave in the West continues, with many states seeing temperatures 8-15 degrees above normal, making it feel like an early start to summer. Keep an eye on index prices for power in the West, as this extreme warmth could create some volatility due to early onset cooling demand. In addition, as states begin to enact orders for re-opening, this could present challenges to the ISO's due to shifting demand and result in more index volatility. Later this morning, the EIA will release their weekly storage report, where market participants are expecting an injection of around 68 Bcf to be reported. If this actualizes, it would be close to the 5-year average of 74 Bcf, but much lower than last year's injection of 114 Bcf for the corresponding week.
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