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Daily Market Update November 30, 2020

Early Morning Update

The Jan21 natural gas contract is trading up $0.13 at $2.97. The Jan21 crude oil contract is down $0.13 at $45.40.

Summary

With today being the last day of the month, November will be remembered as the month when volatility returned to the natural gas market. Historically warm temperatures, challenges in the supply/demand balance, and economic uncertainty all drove the price rollercoaster. The December prompt month traded in a broad 76-cent range, with a max of 3.354, the highest prompt month price since January 2019, and a low of 2.592. It ultimately settled at 2.896/MMBtu last Wednesday. The 12-month strip followed the same pattern, finishing the month at 2.841, after trading in a wide 32-cent range during the past month. Longer terms were all down a penny or two day-over-day. The U.S. Energy Information Administration reported an 18 Bcf withdrawal from storage last Wednesday for the week to Nov 20. This was slightly less than the 21 Bcf pull the market was anticipating, and much smaller than historical averages. Looking ahead to December, current models show little cold in the forecast, and, with production at a seven-month high of 91 Bcf/d, the market is watching to see if the downward trend will continue, or if the coronavirus surge will overwhelm the market and push fundamentals to the backseat.

 

Market Update 11 30 20

Market Settles 11 25 20

 

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