Daily Market Update April 01, 2022
Early Morning Update
The May ‘22 natural gas contract is trading down $0.10 at $5.54. The May ‘22 crude oil contract is down $0.96 at $99.32.
Summary
A ‘quiet’ day at the front of the NYMEX NG curve as the prompt month settled higher by $0.037 to close the day at $5.642. The real noise yesterday were the longer terms, as they all moved higher. Cal ‘28, for example moved from $3.809 to close yesterday at $3.922. Cal ‘25 - ‘27 all moved higher as well as the longer-dated tenors push closer to $4, reflecting ongoing concerns about export levels and the production necessary to meet that demand. In the near-term, weather forecasts still look bullish as temps look set to be below average for much of the eastern US, keeping heating demand at an elevated level. This, of course, is also keeping power prices elevated as they are trending along with NG. On the flip side, index prices are starting to relax somewhat from their winter highs as demand isn’t quite as strong.
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