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Daily Market Update April 25, 2022

Early Morning Update

The May ‘22 natural gas contract is trading up $0.01 at $6.54.  The Jun ‘22 crude oil contract is down $4.67 at $97.40.

Summary

As a new week begins, the summer-like temperatures most of the Midwest enjoyed over the weekend have been replaced with more winter-like temps as a strong cold front moves across the country. Cities like Chicago, Columbus, and Pittsburgh will all see highs this week 30 degrees cooler than what was seen just a few days ago.These below-normal temps have created residual heating demand, which may delay storage injection season to begin in earnest.Despite the bullish weather pattern, the NYMEX natural gas market saw significant weakness last week in both the short and long terms.After hitting a prompt peak of $7.82/MMBtu on Monday April 18th, the prompt settled Friday at $6.53/MMBtu – down almost 17% in a week.The longer terms also got in the action with Cal 2023 leading the way – dropping to its lowest price since April 6th at $4.753/MMBtu.Cals 2024–2027 also moved down 30 cents to all settle on Friday below $4/MMBtu, with Cal 2025 being the floor at $3.827/MMBtu.Despite the strong move down, these terms traded between $3.00 - $3.20/MMBtu as recently as the beginning of the year.Last week was a reminder that volatility doesn’t always have to be a move up as traders continue to digest information on weather, rigs counts, and  inflation.

 

Market Update 04 25 2022

Market Settles 04 22 2022

 

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