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Daily Market Update December 08, 2021

Early Morning Update

he Jan ‘21 natural gas contract is trading up $0.18 at $3.89.  The Jan ‘21 crude oil contract is down $0.25 at $71.80.

Summary

he cold in the North appears to be very short-lived, with warmer-than-normal temperatures dominating the forecast for the majority of the country through Christmas. It’s not looking like its going to be a white one just yet, but the forecast models have been quite volatile this year, just like the market. As temperatures have been moderating compared to late November, power burn levels and Res/Comm demand have both seen a dip, down 3.1 Bcf/d and 2.8 Bcf/d, respectively. So far this month, U.S. dry production is averaging just over 94 Bcf/d, down slightly from the yearly highs we saw late last month. Global LNG pricing, while having declined with the improving stocks, remains elevated compared to NYMEX. With the significant delta making these exports extremely economic, LNG exports are averaging just under 12.0 Bcf/d so far this month and are expected to climb over the next year as two new projects come online. Expectations are that export capacity could climb to over 13.0 Bcf/d by the end of 2022. Yesterday, the NYMEX natural gas futures price for January rose 5.1 cents on the day to settle at $3.708/MMBtu. Near-term pricing has been falling over the past week, dipping to levels we have not seen since late summer. However, this is only December and there is still a lot of winter left. La Nina winter weather patterns could pose a risk for significant cold shots along the East Coast if Pacific side blocking occurs, pushing cold air down into the region.

 

Market Update 12 08 2021

Market Settles 12 07 2021

 

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