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Daily Market Update January 7, 2020

Early Morning Update

The Feb20 natural gas contract is trading up $0.01 at $2.14.  The Feb20 crude oil contract is down $0.62 at $62.65.

 

Summary

The broken record spins on as above-normal temperatures and strong production continue to weigh heavily on natural gas prices. Current near-term pricing seems to have found some balance and has barely moved over the last two trading days. The February contract closed a half cent higher from Friday’s close and settled at $2.135/MMBtu. This price is down 20 cents from last month, 80 cents from last year, and is still only a penny above its all-time low that was established on January 2nd. For historical context, January and February 2019 cleared at $3.64 and $2.95. Recent lows for other months were $2.07 in September ‘19 and $2.08 in October ‘19. The balance of 2020, as well as forwards through 2023, have remained near their record lows from the last few weeks as well, closing at $2.24, $2.40, $2.41, and $2.44, respectively. The current pricing environment is presenting very attractive buying opportunities that may not last very long, as these prices may not survive a colder back half of winter.

Market Update010720

Market Settles 010620

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