Daily Market Update April 16, 2021
Early Morning Update
The May ‘21 natural gas contract is trading up $0.03 at $2.68. The May ‘21 crude oil contract is up $0.03 at $63.50.
Summary
We are beginning Friday trading the NYMEX natural gas prompt month at approximately $2.66/MMBtu, after finishing Thursday's bullish day. This comes after the EIA reported a 61Bcf injection into storage, 7Bcf lower than the modified expectations. Combined with cooler temperatures than we saw over the last couple weeks, the market has seen an overall increase in pricing. Week over week, the NYMEX prompt increased approximately $0.14/MMBtu. Fortunately, storage levels remain in a surplus to the 5-year average but only by a slim 9Bcf Margin. Current forecasts actually time with the short term cold weather forecasts to negate the current surplus and return to a deficit in approximately two weeks. Lower production of natural gas also plays a part in the bullish concern as current levels are being impacted by shoulder season maintenance. A reduction of about 2Bcf/d brings national production to an average around 91Bcf/d.
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