Direct Energy Business
Market Data For Your Home Contact Us
Market Updates

Daily Market Update January 21, 2020

Early Morning Update

The Feb20 natural gas contract is trading down $0.05 at $1.95.  The Feb20 crude oil contract is down $0.54 at $58.00.

 

Summary

Over the weekend, we saw weather forecasts shift from normal temperatures spanning the country to significantly warmer-than-normal temperatures in the 20-day outlook. Currently, natural gas storage levels remain higher than the 5-year average and are predicted to beat the 5-year average end-of-winter level with the current projected withdrawals. With warmer-than-normal temperatures hitting the U.S., it’s no surprise that ResComm demand is down 4.8 Bcf/d year-over-year, and overall demand is down 2.6 Bcf/d and could potentially trend lower. However, even with low demand levels, production has remained steady, just around 91 Bcf/day. The combination of steady production, low demand, and rising forecasted temperatures created a dip in the NYMEX on Friday. The prompt month, Feb ’20, finished the week right at $2.00, down over seven cents on the day. The 2021 calendar strip was down two cents at $2.41, while 2022 fell just less than a penny, settling at $2.44.

Market Update012120

Market Settles 011720

35.175.133.127