Direct Energy Business
Market Data For Your Home Contact Us
Market Updates

Daily Market Update February 3, 2021

Early Morning Update

The Mar21 natural gas contract is trading flat at $2.85. The Mar21 crude oil contract is up $0.54 at $55.30.

Summary

The past two days are a great reminder that winter may not be over just yet. The frigid temperatures that blanketed the majority of the East Coast sent near-term prices soaring and added pressure to next winter’s prices. Fears resurfaced for a potential tightening of the supply/demand balance as we head out of winter and into the summer. Due to the cold, U.S. storage is expecting to see the largest withdrawal of the season to be reported tomorrow, and that could potentially continue for the following two reports, especially for the week ending February 5th. Expectations for tomorrow’s EIA storage report range anywhere from 175 Bcf to 208 Bcf. After the significant run-up on Monday, the March 2021 NYMEX natural gas futures price moved around quite a bit yesterday, ranging from $2.811 all the way up to $3.005, before ultimately settling down not even a penny to $2.845/MMBtu. Slight warming of the forecasts seem to have paused the upward movement, but could be short-lived, as most of the country is expected to see much colder-than-normal temperatures for the next couple of weeks. U.S. dry production continues to average just over 91.0 Bcf/d, right in line with where we saw production in January. We may see a slight dip in the next couple of weeks due to potential well head freeze-offs in the Northeast because of the frigid temperatures.

Market Update 02 03 2021

Market Settles 02 02 2021

18.206.177.17