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Daily Market Update December 23, 2020

Early Morning Update

The Jan21 natural gas contract is trading down $0.06 at $2.72. The Feb21 crude oil contract is up $0.18 at $47.20.

Summary

Yesterday’s trading activity saw a continuation of upward price movement running three days strong. The prompt month contract for January 2021 rallied 2.8%, opening the day at $2.705/MMBtu and closing at $2.780/MMBtu, for a $0.075/MMBtu gain. The February contract also gained six cents, and the 12-month strip gained a little more than four cents. Weather forecasts are showing a cold front coming into Chicago tomorrow and making its way into the Mid-Atlantic by the weekend, while other regions, such as the Northeast, are expecting some rather balmy conditions for the Christmas holiday. The result is a mixed bag for heating demand, which is lagging 1.6 Bcf/day versus December last year. Production of natural gas remains resilient, as estimates show yesterday and today breaking 91 Bcf/day. LNG exports have remained bullish, and industrial demand has been making a comeback so far this month. The U.S. Energy Information Administration’s weekly storage report will be released today at noon, a day early because of the Christmas holiday, and is expected to show a withdrawal that is greater than the 5-year average.

 

Market Update 12 23 20

Market Settles 12 22 20

 

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