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Daily Market Update December 8, 2020

Early Morning Update

The Jan21 natural gas contract is trading up $0.03 at $2.44. The Jan21 crude oil contract is down $0.31 at $45.45.


Yesterday saw further continuation of last week's sell-off in the natural gas market. In the prompt month alone, there was a $0.17/MMBtu drop. For the Q1 strip of 2021, there was approximately a $0.14/MMBtu decrease, giving yet another great buying opportunity, a rare instance that typically does not occur early-Winter. One of the factors playing into this bear market is the strong daily supply of natural gas. Despite depressed prices, total supply has been lying north of 95 Bcf/d for the last week. Paired with the most critical bearish factor of warmer-than-normal temperatures, there is no indication that prices will move up anytime soon. However, there are some long term bullish factors fighting with the market. One of the biggest to consider is natural gas exports, which hit an all-time high of 11.48 Bcf/d three days ago. Not too long ago were we reporting on the fact that exports hit "new highs at 10.5 Bcf/d." This is just showing the international growth in the natural gas market and the potential for demand competition growing on the long-term global scale. With this information in mind, consider locking in your Winter '21 due to favorable pricing, and keep an eye on the outer-term prices.


Market Update 12 08 20

Market Settles 12 07 20


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