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Daily Market Update January 29, 2020

Early Morning Update

The Feb20 natural gas contract is trading down $0.03 at $1.90.  The Mar20 crude oil contract is up $0.57 at $54.05. 

 

Summary

The NYMEX natural gas prompt gained a bit of steam yesterday, gaining $0.032, opening the trading day at $1.902/MMBtu and closing at $1.934/MMBtu. While the February 2020 contract expires today, lackluster demand and healthy supply continue to keep the near-term NYMEX contracts under the $2 mark, through May 2020. Residential/Commercial heating-related demand is down significantly for this time of year, trailing 7.1 Bcf/day vs. last year. However, production is starting to trail off from recent all-time highs, but remains higher than last year, with a 4.1 Bcf/day increase vs. January 2019. Looking ahead, the U.S. Energy Information Administration’s weekly storage report for the week to Jan. 24 is expected to break the streak of below-average storage withdrawals we’ve seen for most of this season with an estimated pull of 225 Bcf. Last year’s draw for the same week was 171 Bcf, and the five-year average withdrawal is 143 Bcf.

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