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Daily Market Update December 01, 2021

Early Morning Update

he Jan ‘21 natural gas contract is trading down $0.12 at $4.45.  The Jan ‘21 crude oil contract is up $1.72 at $67.90.

Summary

esterday’s trading session saw Monday’s slide continue throughout the curve. The January prompt month contract lost 28.7 cents to close at $4.567/MMBtu. This is the lowest that the natural gas prompt month contract has been since September 7th when the October 2021 contract was prompt and the lowest that the January 2022 contract has been since August 31st. The downward movement was fairly consistent through the next few months as the remaining winter strip of January through March dropped 26 cents. The calendar strip for 2022 followed behind as it showed a drop of 18.5 cents, with all 12 months falling at least 15 cents, sitting at $4.12. Further out calendar strips showed lesser downward movement, with 2023 dropping four cents, 2024 falling three cents, and all others through 2034 shifting down 2.7 cents. The backwardation remains to 2026, now at $3.05. On the fundamentals side, natural gas production has held above 94 Bcf/d for 12 days and res/comm demand was at a 10-day low yesterday as weather has moderated this week. The cold front expected to move in through the Midcon/Northeast in the coming days could push this sector higher. LNG exports are at 11.5 Bcf/d, nearly 1.0 Bcf/d off their all time high set last Friday, but still about 1.0 Bcf/d higher than the YTD average of 10.6 Bcf/d.

 

Market Update 12 01 2021

Market Settles 11 30 2021

 

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