Direct Energy Business
Market Data For Your Home Contact Us
Market Updates

Daily Market Update April 8, 2020

Early Morning Update

The May20 natural gas contract is trading up $0.01 at $1.86.  The May20 crude oil contract is up $0.87 at $24.50.

 

Summary

The NYMEX natural gas prompt month continued its third straight day of gains yesterday, rallying 7% for a gain of $0.121/MMBtu, opening the trading day at $1.731/MMBtu and closing at $1.852/MMBtu. The recent rally can likely be attributed in part to colder weather forecasts across much of the Mid-Con and East Coast regions, as well as longer-term production concerns in associated natural gas, a by-product of oil drilling. The colder weather in the forecast, if materialized, will drive a pop in late season heating related demand, limiting injections into natural gas storage. Production of natural gas remains relatively strong, up 2.8 Bcf/day vs. last year. However, analysts remained concerned that continued low prices will push production down in order to drive the market towards equilibrium. Looking ahead, tomorrow’s EIA storage report is expected to report an injection that is higher than the 5-year average.

 

Market Update040820

Market Settles 040720

 

34.204.193.85