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Daily Market Update March 3, 2021

Early Morning Update

The Apr21 natural gas contract is trading up $0.01 at $2.85. The Apr21 crude oil contract is up $1.25 at $61.00.

Summary

The quick shot of cold that has arrived in the Northeast appears to be short-lived. Weather forecasts are showing colder-than-normal temperatures into the weekend, followed by normal to warmer-than-normal temps. If these weather forecasts hold true, March will be pretty mild overall after the frigid February we just had. A highlighted update from CERAWEEK that has been in the news is that API is embracing carbon pricing. Carbon pricing has been a discussion point for a while now, but questions remain on how to implement and who will pay. Estimates for tomorrow’s storage report for the week ending Feb. 26 are projected to be around -154 Bcf, which would be the third week in a row that the withdrawal would be much larger than the five-year average. If the estimates hold true, that would only widen the storage deficit to that benchmark as we head closer to spring. The NYMEX natural gas futures price for April rose 6.2 cents day-over-day to settle at $2.839/MMBtu. U.S. dry production has almost fully recovered to pre-storm levels, averaging just over 91.0 Bcf/d so far this month. If we continue to see higher crude prices, it could lead to higher levels of associated natural gas this summer when demand picks up.

 

Market Update 03 03 2021

Market Settles 03 02 2021

 

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