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Daily Market Update January 26, 2021

Early Morning Update

The Feb21 natural gas contract is trading up $0.05 at $2.65. The Mar21 crude oil contract is up $0.33 at $53.10.

Summary

Yesterday saw a significant increase in the natural gas markets, which extended from the prompt month all the way through the balance of calendar year 2021. The prompt month, itself, grew the most at nearly $0.16/MMBtu, and the minimum growth was $0.07/MMBtu for this December. The natural gas markets appear to be moving upwards as a result of further restrictions on domestic natural gas production. Dry production slipped almost 1.0 Bcf/d from yesterday to 90.6 Bcf/d today. On the retail market, natural gas customers may also have to look out for potential impacts of further regulation in the next four years that would implement carbon taxes at the federal level. Looking at the energy markets, all regions have maintained a contango market, with each calendar year being at higher prices than the previous. The only exception is the PJM market, where prices for 2023 are more favorable than 2022. Earlier analysis showed potential for consolidation and formation of a new price floor for both energy and natural gas prices. Consider managed products to be able to lock in portions of your load, while still having options for the future.

 

Market Update 01 26 2021

Market Settles 01 25 2021

 

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