Daily Market Update November 22, 2021
Early Morning Update
he Dec ‘21 natural gas contract is trading down $0.25 at $4.82. The Dec ‘21 crude oil contract is up $0.06 at $76.00.
Summary
s we begin a shortened holiday week for many in the country, the energy markets continued to show volatility last week, especially for the upcoming winter.Seemingly everyday repeated a NYMEX rollercoaster with large intra-day price swings. The weather continues to be a main driver as a clearer picture of winter forms with La Nina continuing to deepen in the Pacific.In a typical La Nina setup, the southern and southeast U.S. are warmer and drier than normal, but the north-central U.S. sets up for a wetter and colder-than-normal winter. There also looks to be growing consensus amongst the weather community that December holds the greatest risk for below-normal cold for the lower 48 states when compared to January and February.This all being said, the Dec 2021 – Feb 2022 strip settled above $5/Dth at $5.08 on Friday, which was up 27 cents from last Friday’s close, but down significantly from our recent high of $6.21/Dth on October 27th.Cal 2022 has followed a similar pattern, where it’s down 8% off its high set on 10/27/21 to settle at $4.325/Dth.The longer terms continue to be backwardated, with Cal 2026 the cheapest on the board trading above $3/Dth at $3.04.
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