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Daily Market Update April 15, 2022

Early Morning Update

NYMEX is closed today due to Good Friday holiday.

Summary

As North America moves further into spring, the weather outlook sees a bit more warmth in the forecast, but the natural gas market remains white hot. The May ‘22 prompt month contract moved up a whopping $0.30 to $7.30/MMBtu yesterday following a lower-than-expected storage injection, according to the EIA's storage report. However, the market volatility has not been confined to the near-term. What has been unique to market conditions over the last two weeks or so has been the fact that outer strips, extending as far as 2026 have been moving more steadily upwards at a faster pace. Even Cal ‘26 has moved up an incredible $0.66 cents since a month ago. The trend that the near-term has remained the most impacted has remained true, as 2023 has moved up nearly double that change at $1.29. Even though the storage injection season has begun, impacts from production are going to pave the way for future changes in this market. Concerns for ample storage plague the thoughts of market participants, something stronger production could potentially help remedy. Summer weather will also play a factor as natural gas demand for power generation is key for the high electricity load that air conditioning requires. If the market predicts a hot summer, there may be more fear baked into market prices.

 

Market Update 04 15 2022

Market Settles 04 14 2022

 

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