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

Daily Market Update January 27, 2020

Early Morning Update

The Feb20 natural gas contract is trading up $0.06 at $1.95.  The Mar20 crude oil contract is down $1.69 at $52.50. 

 

Summary

Weather forecasts remained largely unchanged over the weekend, with a wide swath of the country locked in above-normal temperatures. As above-average temps drag into February, the wily polar vortex remains elusive – will it make an appearance in late February? Only time will tell, but the market continues to watch. With these mild temps to start the month, the storage outlook remains unchanged, with end-of-season estimates around 1.8 Tcf – about 200 Bcf higher than the 5-year average and 500 Bcf above last year. This late week bearish sentiment allowed the NYMEX to hit new all-time lows for the 2021-2023 calendar strips (2.357, 2.393, and 2.445, respectively). This is notable for Cals 2021 and 2022, since they broke through the $2.40 resistance barrier for the first time. There is some uncertainty in the global financial markets this morning, with the spreading coronavirus in China (and potentially worldwide) – could quarantines hamper worldwide economic growth? Or will travel bans curb demands for jet fuel and put downward pressure on oil? We’ll be watching over the coming weeks.

Market Update012720

Market Settles 012420

3.233.221.149