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Daily Market Update December 11, 2020

Early Morning Update

The Jan21 natural gas contract is trading up $0.03 at $2.58. The Jan21 crude oil contract is down $0.61 at $46.77.

Summary

The Energy Information Administration published their report for storage change yesterday and quickly changed the bearish trend we experienced the first half of the week. Their report showed a 91 Bcf withdrawal when a 86 Bcf was expected in the face of a 65 Bcf five-year average. This quickly pushed the NYMEX natural gas prompt month up $0.13/MMBtu. This is a fairly large market movement, but still slightly smaller than the earlier bearish moves we saw on Monday. A quick recovery like this, pushed up by fundamentals such as storage levels is a great demonstration of how tight buying opportunities are for forward hedges. Fortunately, current day ahead pricing is still more competitive in most markets due to the current warmer weather patterns keeping demand off of the top. Despite this, market forecasts for this winter still indicate a colder January and February than December. Keep this in mind when looking at your energy spend, and feel free to reach out to our team of energy advisors if you would like to review your company's natural gas or energy strategies.

 

Market Update 12 11 20

Market Settles 12 10 20

 

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