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Daily Market Update April 22, 2022

Early Morning Update

The May ‘22 natural gas contract is trading down $0.09 at $6.86.  The Jun ‘22 crude oil contract is down $1.431 at $102.36.

Summary

Another week down, another crazy time in the markets. In just the last 5 trading days, there has been a NYMEX Henry Hub natural gas trading range that spanned the 6, 7, and 8 dollar levels for the prompt month for a full range of $1.34/MMBtu. The high trades were just above 3 dollars at $8.03/MMBtu on Monday, while the minimum was seen just yesterday at $6.69/MMBtu following the EIA storage report. This report came out showing a 55Bcf injection, surprising the market as they had around a 40-44Bcf injection prediction. Despite the significant drop in intraday trading yesterday, the market rebounded back upwards to settle fairly flat to open, only $0.02/MMBtu up. What has been interesting to see is the fact that while the 12 month strip had increased day over day, further strips starting in March of 2023 had seen a marginal decrease. While not a significant fall of outer strip prices, it does demonstrate the fundamental differences that are faced between the near term and outer terms. One hopeful piece of information is the fact that there has been an acceleration of new rigs accounted for, creating the potential of higher production in the next few months. Currently, much of the volatility in the market is being attributed to the tight supply and demand balance, so an increase in production may alleviate some of the pressure.

 

Market Update 04 22 2022

Market Settles 04 21 2022

 

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