Daily Market Update March 2, 2021
Early Morning Update
The Apr21 natural gas contract is trading up $0.03 at $2.81. The Apr21 crude oil contract is up $0.06 at $60.70.
Summary
Yesterday, we saw a slight uptick in the NYMEX natural gas space. This tiny upward movement affected the calendar strip 2022 more than the 12-month strip or the balance of 2021. Interestingly, the market has appeared to be slowing down and weighing its options as the last three trading days have been trading up or down only 1-3 cents per MMBtu. Meanwhile, production has returned to pre-storm levels, but Northeastern gas markets are preparing for a cool front pushing into that region. This is no "Texan Storm", though. Instead, we will see this market just have an elevated demand with lower outflows from its own producing wells. Thankfully summer is not that far away, and we can begin looking forward to prepping for the heat. Prices have retreated nearly $0.20 below the $3.00/MMBtu mark, creating a soft-ceiling, as analysts have begun calling it.
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