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Daily Market Update April 19, 2022

Early Morning Update

The May ‘22 natural gas contract is trading down $0.55 at $7.27.  The May ‘22 crude oil contract is down $3.31 at $104.90.

Summary

This time of year, we think of April showers bringing May flowers.However, we are seeing a rare, April Nor’easter bringing snow along with it.According to NOAA, parts of the Poconos, Adirondacks, and the Catskills have received multiple inches of snow accumulation. This pop of cold is only expected to last a few days, before returning to above-average temperatures for much of the Midcon and East Coast this weekend.However, as storage inventories are below average for this time of year, pressure mounts to ease fuel supply concerns in Europe with U.S. LNG, and producers have yet to materially increase production, a trifecta of forces has emerged to send the intraday price for the NYMEX natural gas prompt month above the $8/MMBtu mark yesterday, before settling at $7.82/MMBtu at market close.The longer term calendar strips moved higher, as well, with Cal ‘23 gaining over 21 cents, Cal ‘24 rising 9.5 cents, and Cal ‘25 up 4.8 cents to settle at $4.152/MMBtu. Traditionally, moderate temperatures in the shoulder season would send excess gas into underground storage to use next winter.This pop of cold is hindering that gas from making its way into storage. All the while, the U.S. is exporting a record amount of LNG, with plans to increase export capacity, and production remains flat.

 

Market Update 04 19 2022

Market Settles 04 18 2022

 

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