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Daily Market Update March 31, 2020

Early Morning Update

The May20 natural gas contract is trading up $0.02 at $1.71.  The May20 crude oil contract is up $1.01 at $21.10.

Summary

Yesterday, the May ‘20 natural gas contract settled at $1.69, rallying about $0.04 from yesterday morning and up two cents on the day, while crude oil dipped $0.16, settling at $20.09. Despite U.S. attempts to deescalate the oil dispute between Russia and Saudi Arabia, neither country showed signs of letting up production. We saw a 4.8 Bcf/d day-over-day increase in U.S. natural gas demand to 82.5 Bcf/d, despite continuous shutdowns of nonessential businesses across the country due to COVID-19. The demand increase is likely from Res/Comm demand rallying yesterday (growing 4.2 Bcf/d to 30.1 Bcf/d), most likely due to heating demand, as we saw a cold front pushing through the Northeast, Southeast, and Midcon regions that will continue through today. Besides extremely cold temperatures sliding across the Northwest/Alberta area, most of the U.S. is forecasted to have normal to above-normal temperatures for the remainder of the 20-day outlook. Overall, we are still in uncertain times with the spread of COVID-19 remaining unpredictable, and an oil price war continuing to brew. Market disruptions are affecting long-term pricing, as Cals ’21-’23 all rallied yesterday, as well.

Market Update033120

Market Settles 033020

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