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Daily Market Update December 03, 2021

Early Morning Update

he Jan ‘21 natural gas contract is trading up $0.16 at $4.21.  The Jan ‘21 crude oil contract is up $1.76 at $68.26.

Summary

emand for natural gas across all sectors has seen increases from last year. LNG exports have hit record highs in the last week while coal to gas switching and increases in usage due to lessened pandemic restrictions on industry. Despite this, weather still plays a very large part, and residential and commercial usage has been fairly low for the last week or so. While forecasts for U.S. temperatures appears to be remaining warm for large swaths of the country, an overall moderation of temperatures to more normal levels has induced a 4.4Bcf/d growth in demand for heating. The warmth has come in after a cold spell which created a larger than average withdrawal from storage that the EIA reported yesterday, but expectations are for smaller than normal withdrawals for the next three weeks. Prices as a result of the warm forecasts have fallen from their highs and the NYMEX natural gas prompt settled at $4.056/MMBtu. To put this in perspective, prices for the prompt month 30-days ago were approximately $5.54/MMBtu. Since Monday, prompt month has fallen approximately $1.143 as the market was fully bearish so far this week.

 

Market Update 12 03 2021

Market Settles 12 02 2021

 

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