Daily Market Update January 10, 2020
Early Morning Update
The Feb20 natural gas contract is trading up $0.05 at $2.21. The Feb20 crude oil contract is down $0.40 at $59.16.
Summary
Another quiet day as near-term NYMEX NG prices continue to drive through a ditch. Even a small move up couldn’t get prices above $2.20 as the prompt settled at $2.166, up $.025 on the day. That the market ticked higher after a bearish storage report of only 44 Bcf perhaps indicates that the market will need much more bearish news to test lower levels. Weather forecasts have been so mild and demand so low that we may need to see those conditions extend into February for this bear market to continue. Right now, forecasts are starting to show some below-average temperatures creeping into the northeast starting around Jan 20. If true, this would cause the first real heating demand since early December. For now though, prices are still very low and $3.00 gas seems like a distant memory.
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