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Daily Market Update April 08, 2022

Early Morning Update

The May ‘22 natural gas contract is trading up $0.13 at $6.49.  The May ‘22 crude oil contract is up $0.98 at $97.01.

Summary

This week has been extremely bullish for commodity energy markets as natural gas prices rallied and helped push regional power prices higher as well. The NYMEX Henry Hub price started trading this week at $5.712/MMBtu and settled yesterday at $6.359/MMBtu following a 33 cent increase in just one day. There seems to be several factors impacting the markets to the positive direction, one of them being the larger than expected withdrawal from storage that the EIA reported. The 8bcf difference resulted in a -33bcf change to storage levels as the final forecasted withdrawal for the 2021-2022 season. Future forecasts have varied but cold weather has seemed to influence midcontinent and western temperatures for the upcoming week. Though the near term is concerning, many eyes are also focusing further out as the January 2023 contract has settled within 15 cents of the $7 dollar level with volatile movements potentially putting Winter forwards at concerning levels. Further impacts will also be assessed as preliminary Summer forecasts begin to be published by meteorologists in the coming month, helping predict the upcoming cooling demand for warmer temps.

 

Market Update 04 08 2022

Market Settles 04 07 2022

 

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