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Daily Market Update November 12, 2020

Early Morning Update

The Dec20 natural gas contract is trading down $0.01 at $3.02. The Dec20 crude oil contract is up $0.15 at $41.60.

Summary

Another day of bullishness prevailed during yesterday's trading session, as the NYMEX natural gas contract for December gained over eight cents and closed out at $3.031/MMBtu. Similarly, the first quarter of 2021 strengthened by seven cents, which helped Cal '21 to also gain four cents. It seems the six-day selloff, bolstered by bearish weather forecasts, has come to an end, as the market, again, faces the reality of faltering production and a bullish outlook for growing LNG exports. Reports are showing that recent rig and capital expenditure cuts by producers in the Permian Basin have the possibility of keeping production depressed until mid-2021. Due to this, the market is experiencing increased competition for gas, creating very strong price support for regional gas bases across the West. Natural gas storage numbers will be published today, and market participants are expecting the U.S. Energy Information Administration to report a withdrawal of around four Bcf for the week ending Nov. 6. This would be much lower than previous years, with the 5-year average showing a 33 Bcf injection for this same week.

Market Update 11 12 20

Market Settles 11 11 20

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