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Daily Market Update February 22, 2021

Early Morning Update

The Mar21 natural gas contract is trading down $0.13 at $2.93. The Mar21 crude oil contract is up $0.98 at $60.22.

Summary

After one of the more turbulent weeks in recent memory for the energy complex, the markets will try to return to some level of normalcy after last week’s wicked winter weather. After nearly a week of $9,000/MWH scarcity pricing in TX, index prices returned to pre-weather event levels on Friday morning but the devastation remains and impact unfolds. With damage estimates above of $10 billion dollars and investigations being launched across the TX energy spectrum, this event will remain in the headlines for years to come. While not nearly to the same degree, index markets across the US saw their highest on-peak weekly prices this winter: $225 at IL HUB, $175 at SP15, $100 in NY Zone J, $100 at PJM West HUB, $95 at Mass HUB and $80 at PSEG. Luckily the polar vortex is projected to retreat back into Canada this week, leading to above average temperatures for most of the country and hopefully taking index prices to levels seen earlier this winter. An item to watch this week is the potential for a historically top 3 all-time large storage withdraw on Thursday of 356 BCF which would push gas storage levels below LY and potentially 5YA levels. It bears watching to see how the market reacts to a projected end of winter (EOW) storage level of 1.3 TCF which would be over 700 BCF lower than 2020 levels.

 

Market Update 02 22 2021

Market Settles 02 19 2021

 

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