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Daily Market Update April 23, 2021

Early Morning Update

The May ‘21 natural gas contract is flat at $2.74. The Jun ‘21 crude oil contract is down $0.09 at $61.34.

Summary

Yesterday's EIA natural gas storage report had relatively large and immediate impacts on the market yesterday. To start off, the EIA reported a 38Bcf injection, coming in 6Bcf below the consensus market estimates at 44Bcf. This came due to the cold front that pushed through onto the majority of the US. In the markets, this resulted in a about a $0.010/MMBtu reversal in the prompt month from the downward movement from earlier in the trading day. Before the EIA report, the prompt had traded down $0.045 from $2.696/MMBtu. Within 1 minute following the 10:30am EST report, NYMEX natural gas prompt moved up an extra $0.07/MMBtu. This volatility clearly exemplifies the surprise the market felt after trading downwards for the last few days despite the overall bullish fundamentals. With the cold front coupled with low storage levels means that bullish impacts can have much larger impacts than the opposite. Speaking of storage levels, this storage report places the market precariously close to the 5-year average. Due to an expectation for another very low injection next week of only 1Bcf compared to the average of 66Bcf, the market expects to move into a deficit to this benchmark.

 

Market Update 04 23 2021

Market Settles 04 22 2021

 

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