Daily Market Update March 13, 2020
Early Morning Update
The Apr20 natural gas contract is trading up $0.10 at $1.94. The Apr20 crude oil contract is up $1.30 at $32.80.
Summary
After nearly touching $2.00 on Wed ($1.998), the market has retreated back to $1.841, closing down $0.037 on Thursday. A weak storage report, with a mere 48 bcf draw reported, led the market lower. Warm weather forecasts and concerns about a coronavirus-led economic downturn led the market lower yesterday. There are also concerns (to the upside) that the sharp drop in crude oil will lead to lower shale drilling for oil and lower associated natural gas production. There is significant uncertainty in regards to current events: coronavirus, crude oil pricing, a pending economic downturn. All of these things are causing the market to behave in ways that aren’t necessarily logical and often difficult to predict. Without sounding like an infomercial, please reach out to your Direct Energy representative if you have questions about current market conditions.
Loading please wait...