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Daily Market Update February 25, 2021

Early Morning Update

The Apr21 natural gas contract is trading up $0.01 at $2.80. The Apr21 crude oil contract is up $0.08 at $63.30.

Summary

Production continues to recover, as the post-cold snap warmth has put downward pressure on the short-term natural gas market for the fifth trading day in a row. The March contract weakened by $0.025/MMBtu during yesterday’s trading session amidst 0.317 Bcf of gas coming back online in The Southeast and Texas. The prompt contract expired at $2.854/MMBtu, down nearly $0.40/MMBtu from its recent high last fall. Last March settled at $1.82/MMBtu pre-lockdowns, and the five-year March average is $2.56/MMBtu. The rest of the 24-month strip also fell within the range of $0.02-$0.06/MMBtu, as preliminary weather forecasts for March depict above-normal temperatures leading to bearish demand. Today’s storage report, set to be released by the U.S. Energy Information Administration at 10:30 this morning, is expected to capture near-record breaking levels of demand from last week's winter event. The withdrawal range is estimated to be between 287 and 374 Bcf, both well above the five-year average. For reference, the current withdrawal records sits at 359 Bcf.

 

Market Update 02 25 2021

Market Settles 02 24 2021

 

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