Daily Market Update April 1, 2021
Early Morning Update
The May ‘21 natural gas contract is trading down $0.02 at $2.59. The May ‘21 crude oil contract is up $0.84 at $60.00.
Summary
Yesterday, the May prompt month natural gas contract experienced a modest loss of less than two cents day-over-day as it closed out at $2.608/MMBtu. The near-term 12-month strip and Cal '22 both remained relatively stagnant from the previous trading day. Weather forecasts anticipate colder-than-normal temperatures hovering over the Southeast and along the East Coast to dissipate by Easter, followed by a broad blanket of warmer-than-normal temperatures to cover the majority of the country throughout next week. Total U.S. demand crept up to just above 102 Bcf/d thanks to that shot of cold in the South and East Coast, but the market is expecting demand to weaken on the heels of the broad warmth next week. Market participants are anticipating the storage report today to show the first injection of the season, somewhere in the neighborhood of 16 Bcf. If this actualizes, we would be flipping to storage building one week ahead of schedule, where the 5-year average is showing a 24 Bcf withdrawal for this same week, historically. Tomorrow is a Direct Energy company holiday, and, as such, there will be no Daily Market Update published.
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