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Daily Market Update December 22, 2020

Early Morning Update

The Jan21 natural gas contract is trading up $0.07 at $2.78. The Jan21 crude oil contract is down $0.62 at $47.35.

Summary

The NYMEX natural gas market was fairly quiet yesterday, with the prompt month gaining only half a penny and settling at $2.705/MMBtu. Cals ‘21 and ‘22 moved up two cents and one cent, respectively, while the calendar strips after 2023 moved down between a penny and a half to three cents. There are some conflicting factors now that may have been the reason for the quieting of a market that has seen some extreme volatility over for the last couple of months. The first variable in play is weather. The northeast U.S. ended last week experiencing a large snow storm, and has since warmed up slightly, bringing slightly lower demand and some bearishness to both the natural gas and the electric markets. On the flipside, we have strong supply fundamentals, with natural gas production sticking above 90 Bcf per day currently. Overall, the market seems to be looking at much more bullishness in the longer term, which is supported by managed money holding net long contracts and LNG exports at near-record levels.

 

Market Update 12 22 20

Market Settles 12 21 20

 

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