Daily Market Update November 25, 2020

Early Morning Update

The Dec20 natural gas contract is trading down $0.02 at $2.76. The Jan21 crude oil contract is up $0.59 at $45.50.

Summary

Despite natural gas production trending at a seven-month high of 91 Bcf/d for the past week and warmer-than-normal weather blanketing most of the country, the NYMEX prompt month climbed another 6.4 cents yesterday, settling at 2.775/MMBtu. As has been the case recently, the bullishness extended through the front of the NYMEX gas pricing curve, with little movement beyond Q1 of 2022. Jan ‘21 was the biggest mover, rising almost eight cents yesterday to $2.90. Average and above-average temperatures are forecast to stick around through the second week of December, with some colder-than-normal temps popping up in the South in the 6-10 day outlook, but isolated to the Southeast through mid-December. The U.S. Energy Information Administration will release their weekly storage report today, a day early because of the holiday. With a wide range spanning a 47 Bcf withdrawal to a 33 Bcf injection, the consensus of market estimates is a 21 Bcf pull from storage inventories for the week to Nov 20. Due to the holiday, Direct Energy will not publish this report on Thursday or Friday this week. Direct Energy would like to wish everyone a safe and happy Thanksgiving!.

Market Update 11 25 20