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Daily Market Update March 18, 2020

Early Morning Update

The Apr20 natural gas contract is down $0.08 at $1.65.  The Apr20 crude oil contract is down another $2.75 at $24.20!

Summary

Near-term NYMEX natural gas prices continued their downward trend during yesterday’s trading session, as the prompt month lost 8.6 cents to close at $1.729/MMBtu. All of the downward momentum was confined to the front eight months, with the 12-month strip closing at $2.17, down just under three cents. The forward calendar strips all moved up around 1.5 to 3.0 cents, but all still remain near their all-time lows that had been set recently. Crude oil also continued down for the day, losing $1.85 to close at $26.82. U.S. demand is down again for today on mild weather, as the ResComm sector leads the way, down 1.4 Bcf/d at 29.3 Bcf/d. The effects from the economic slowdown due to the coronavirus have not really impacted the supply/demand equation as of yet, and colder temperatures this weekend are expected to drive demand higher. The U.S. Energy Information Administration’s weekly natural gas storage report to be released tomorrow has the potential to show an early injection, with estimates projecting a withdrawal of just 5 Bcf.

Market Update031820

Market Settles 031720

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