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Daily Market Update April 6, 2021

Early Morning Update

The May ‘21 natural gas contract is trading up $0.04 at $2.55. The May ‘21 crude oil contract is up $0.85 at $59.50.

Summary

The May contract for NYMEX natural gas experienced a very bearish day yesterday, closing nearly $0.13/MMBtu less than it's open. The downward movement of this contract, which closed at $2.511/MMBtu, was likely due to a late reaction to the buyer-friendly injection into natural gas storage reported last week by the U.S. Energy Information Administration, as well as vey mild weather on the horizon for most of the country. The injection, which was projected to be 11 Bcf, came in at 14 Bcf instead, as weather forecasts indicate a normal to warmer-than-normal range of temperatures as we get into the full swing of spring. In the next couple of weeks, meteorologists will be issuing their preliminary summer forecasts, likely resulting in more market movement based on their outlooks. As for the short term, we may see any sort of movement today, up or down, but a small bullish correction would not seem too crazy, as technical indicators would say that there is strong support for the $2.50/MMBtu mark for May and the balance of the year. Add in the fact that there was a price change as drastic as we saw yesterday, and we could likely see some compromise made in the short term.

 

Market Update 04 06 2021

Market Settles 04 05 2021

 

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