Daily Market Update November 08, 2021
Early Morning Update
he Dec ‘21 natural gas contract is trading down $0.07 at $5.45. The Dec ‘21 crude oil contract is up $0.63 at $81.90.
Summary
s we’ve started November, the nation is seeing a very active weather pattern.After an early season cold blast across the East last week, the temperature rollercoaster swings back the other way, with above-normal temperatures dominating the early week forecast before a large storm enters the Midwest mid-week.Even drought ridden California is getting into the action with rain and snow early in the week.With the region’s reservoirs current capacity significantly below historical averages, the region hopes the Pacific storm train continues. Despite the up and down weather pattern, short term natural gas prices remained volatile last week for the upcoming winter. Prices for Q1 2022 started the week at $5.37/MMBtu, dropped to $5.14/MMBtu, but then ended the week at $5.62/MMBtu – seemingly repeating the same story as prior weeks with large intra-day trading ranges and swing.While not being as volatile, the remaining nine months of 2022 have traded in a smaller range of 29 cents between $3.91 and $4.20 over the past month. As winter begins to materialize, It will be interesting to see if the large swings we’ve seen for Q1 begin to impact these months next year.
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