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Daily Market Update December 10, 2021

Early Morning Update

he Jan ‘21 natural gas contract is trading down $0.04 at $3.78.  The Jan ‘21 crude oil contract is down $0.96 at $71.40.

Summary

n uncharacteristically quiet day yesterday as the NYMEX prompt month finished down -$.001, nearly flat, to close at $3.814.  The EIA did release a report of a draw of 59 Bcf, near expectations and the market seem to take that news in stride, reacting little.As we make our way into winter, the weather forecasts for the balance of December call for above average temps for the eastern 2/3 of the US.  At the beginning of winter, there was concern that an early cold snap could start a drawdown of storage quickly and would make the balance of winter difficult to navigate as the supply/demand balance would be precarious.  But mild temps and rebounding production has eased fears (for now) about a worst case storage scenario, and pricing has fallen in response.  Looking ahead, while things look good now, we still have a long way to go in winter and we will surely see some cold temps before it’s over.  The question of whether the market will rebound, and by how much, will depend on the duration and intensity of the cold.

 

Market Update 12 10 2021

Market Settles 12 09 2021

 

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