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Daily Market Update January 30, 2020

Early Morning Update

The Mar20 natural gas contract is trading down $0.03 at $1.83.  The Mar20 crude oil contract is up $1.03 at $52.30. 

 

Summary

The February NYMEX natural gas contract expired yesterday with a bang, shedding 5.7 cents and setting a new all-time low, as it closed the day out at $1.877/MMBtu. This is $1.07 cheaper than where the Feb19 contract settled this time last year, and $1.75 cheaper than two years ago. Just when we think we might see some excitement in the market with more winter-like conditions, weather forecasts continue to be revised to warmer-than-normal conditions. This was the case yesterday, as the above-average temperatures increased even higher in the 1-10 day range. Additionally, the weather forecast in the 11-15 day range that was previously showing above-average temperatures in the Southeast, was revised to encompass a larger area now inclusive of  the entire East Coast and Northeast, major demand centers for natural gas. Later this morning, the EIA will release their weekly natural gas storage report, where a very large withdrawal of 225 Bcf is expected by market participants. If this actualizes, it would be 54 Bcf larger than last year’s pull for the same week, and 82 Bcf larger than the 5-year average draw.

Market Update013020

Market Settles 012920

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