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Daily Market Update November 11, 2021

Early Morning Update

he Dec ‘21 natural gas contract is trading up $0.07 at $4.95.  The Dec ‘21 crude oil contract is down $0.84 at $80.50.

Summary

esterday brought even more welcomed relief to the front of the NYMEX pricing curve thanks to production staying steadily above 93 Bcf/d combined with mild weather forecasts predicting weaker November withdrawals from storage. Near-term weather forecasts have been revised to show not-as-cold conditions, particularly over the next 6-20 days in the Midwest and East, with these areas predominantly now trending below normal by three degrees, versus five degrees previously. As a result, we saw the prompt month drop 10 cents and close out the day at $4.880. Similar movement was felt in Q1 '22, with that strip also losing an average of a dime. The EIA's storage report was released yesterday, a day early due to Veteran's Day, and showed that the gas storage inventories grew by 7 Bcf. This injection proved to be slightly less than market expectations, but larger than the 2 Bcf increase seen last year for the same week. The market is expecting one more injection to be reported next week before we flip to withdrawal season. Current estimates have next week's injection in the ballpark of 28 Bcf, which would help us inch closer to the 5-year average, being that the 5-year average benchmark is actually showing a withdrawal of 12 Bcf for that same week.

 

Market Update 11 11 2021

Market Settles 11 10 2021

 

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