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Daily Market Update December 23, 2021

Early Morning Update

he Jan ‘22 natural gas contract is trading down $0.19 at $3.79.  The Feb ‘22 crude oil contract is up $0.14 at $72.90.

Summary

hen reviewing the market fundamentals, we continue to see weather as the major driver that's tipping the scales day-over-day. That was no different yesterday as the market movement was concentrated in the remaining winter strip of Jan-Mar '22, with the biggest mover being the Jan '22 prompt month that climbed more than 10 cents and settled at $3.976/MMBtu. Revisions to the near-term weather forecast show transient cold risk for the Midcon and East into the first half of January, which is likely the culprit for yesterday's market movement. Natural gas production continues its steady pace of around 95 Bcf/d, while demand remains mild from the record warmth in the South and across the central U.S. right now. Market participants are expecting the EIA to report an incredibly small storage withdrawal this morning, somewhere in the ballpark of 53 Bcf. If this actualizes, it would be 100 Bcf smaller than the 5-year average and 94 Bcf less than this same week last year. Not only that, today's storage report is also expected to erase the deficit to the 5-year average, thanks to increased production and record warmth dampening the need for large storage withdrawals thus far this season.

 

Market Update 12 23 2021

Market Settles 12 22 2021

 

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