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Daily Market Update May 4, 2021

Early Morning Update

The Jun ‘21 natural gas contract is trading up $0.03 at $2.99.  The Jun ‘21 crude oil contract is up $0.81 at $65.30.

 

Summary

May the fourth be with you! The NYMEX natural gas contract for June is trading fairly high in the middle to upper range of $2.90-$3.00/MMBtu, settling on Monday at $2.966/MMBtu, up another 3.5 cents. The $3.00/MMBtu mark has been a hard ceiling to break, with prompt months only having broken that level during the February winter storm event in Texas and in early November before that. While these market updates have discussed concerns around production extensively, LNG exports have also been very strong, putting higher pressure on many other markets. Consider that higher LNG exports tend to impact domestic Northeast storage. In a region so dependent on natural gas storage for heating demand in the winter, the market has seen increases in forward energy pricing as a result. The West Coast and Texas have also seen higher energy prices as a result of weather patterns bringing in some heat, pushing demand upwards, while supply is also limited due to ongoing repairs from the winter storm, as well as typical shoulder season maintenance. “Stay on target.” – Gold Five

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