Daily Market Update January 8, 2020
Early Morning Update
The Feb20 natural gas contract is trading flat at $2.16. The Feb20 crude oil contract is down $0.50 at $62.20.
Summary
There was slight upward movement in NYMEX natural gas prices yesterday, as the prompt month gained 2.7 cents to close at $2.162/MMBtu, and the 12-month strip gained just over half a penny to $2.323. Beyond the near-term, calendar strips 2021 through 2026 were fairly flat, while 2027 and 2028 showed the most movement on the day as they gained a penny and a half. A short break in the above-average temperatures to start the week has pushed up residential/commercial heating demand to a seven-day high. However, this should be short-lived, as warmer temperatures are forecasted beginning this Friday through next week across the Northeast. Overall, total demand is 2.2 Bcf/d higher than this time last year, while production is remaining fairly steady and 5.5 Bcf/d higher than a year ago. Tomorrow’s EIA Natural Gas Storage Report is projected to show a withdrawal of 55 Bcf, which would be significantly lower than last year (-94), as well as the 5-yr average (-184).
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