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Daily Market Update April 30, 2021

Early Morning Update

The Jun ‘21 natural gas contract is trading up $0.03 at $2.94. The Jun ‘21 crude oil contract is down $1.39 at $63.62.

Summary

This whole week with the exception of Thursday, there has been a bullish movement for NYMEX natural gas contracts up through at least calendar strip 2022. Thursday's contrary movement came following the EIA's storage report, showing a slightly higher injection than forecasted: 13Bcf prediction with 15Bcf actual injection. Further contango markets, or markets that see prices going higher from term to term, are likely reflecting much of the concern for the current storage situation in which we currently are at a deficit to the 5-year average. As a result, many of the midcon and eastern markets have seen ticks up in pricing due to their reliance on natural gas for power burn. Another market that has seen bullish movement is in US oil prices which have hit over $65/Bbl. With prices being significantly more profitable now for domestic crude producers, more production is going to be incentivized. Associated gas then could make a larger portion of the production as a byproduct of oil drilling, also increasing total U.S. production of natural gas.

 

Market Update 04 30 2021

Market Settles 04 29 2021

 

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