Daily Market Update December 15, 2020

Early Morning Update

The Jan21 natural gas contract is trading down $0.06 at $2.62. The Jan21 crude oil contract is up $0.41 at $47.40.

Summary

The last few trading days have seen bullish movement on the NYMEX natural gas prompt month, but with a slight reversal this morning. This could just be a small correction, noise, or potentially a reaction to news on the weather forecasts of a relatively warm next few weeks. We will begin to see the teeth of the winter season in the first large snow storm coming in the next few days. It is expected to blanket the northeastern regions of the U.S. and bring up to three feet of snow in some areas. Winter events like this will typically have volatile impacts on day-ahead pricing. Pricing for the day-ahead has been favorable in most markets lately, but energy and gas hedges for managed product customers shine in times like this, where we usually see prices spike and cost users much more than expected if not protected. There still is time to hedge the rest of the winter from January through March, so reach out and let us know if you would like to review your energy strategy for the rest of this season and for the upcoming year.

Market Update 12 15 20