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Daily Market Update November 4, 2020

Early Morning Update

The Dec20 natural gas contract is trading down $0.03 at $3.03. The Dec20 crude oil contract is up $0.94 at $38.60.

Summary

Yesterday’s NYMEX trading session saw mixed movement, with pricing moving down through 2023, but broad upward movement from 2024 through the end of the curve. The December prompt month contract moved the most, losing 18.5 cents to close at $3.059/MMBtu, with the drop continued through the winter months, as Dec ’20 through Mar ’21 dropped over 17 cents. The 2021 calendar strip followed closely, as it lost 10 cents, moving down to $3.03, while the 2022 and 2023 calendar strips trailed, falling just 2.3 and 1.4 cents, respectively. Beyond 2023, the movement turned to the upside, with each year gaining increasingly more than the previous years out to 2030, with 2032 gaining just under nine cents. NYMEX remains in a backwardated position through 2024, the lowest strip on the board at $2.50. On the supply/demand side, residential and commercial heating demand is continuing to slide from their recent high point on Monday and is expected to remain lower with the warm weather forecasted through at least the next seven days. Domestic production has been hovering just under 90 Bcf/d, spurred on by the North region’s output, as it hit an all-time high of 34.2 Bcf/d.

 

Market Update 11 04 2020

Market Settles 11 03 2020

 

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