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Daily Market Update April 27, 2022

Early Morning Update

The May ‘22 natural gas contract is trading up $0.08 at $6.93.  The Jun ‘22 crude oil contract is down $0.60 at $101.10.

Summary

Near-term pricing continued it roller coaster ride as supply/demand levels remain tight and uncertainty for this summer grows. A shot of cold returned to the Midcon and Northeast and lingers through this weekend, once again causing a late season spike in demand. Preliminary summer weather outlooks will start to trickle in, and this will be a first look to see if we might expect warmer temps to start the summer. With the recent cold, the projected injections into storage over the next couple of weeks are expected to be less than the 5-year average, which would only widen the current deficit. LNG exports have dipped slightly, averaging around 12.3 Bcf/d this past week, down month-over-month due to planned maintenance. Yesterday, it was reported that Russian gas flows to Poland were to be shut off due to a refusal to pay in rubles. This unfortunately caused another spike to NBP (UK) LNG pricing, which had been coming off over the past couple of weeks. The EIA storage report tomorrow is estimated to report a 42 Bcf injection, less than the 5-year average of 53 Bcf. U.S. dry production continues to disappoint, despite the growing number of rig counts, averaging just under 93.0 Bcf/d over the past week. On its penultimate day of trading, NYMEX prompt month pricing was extremely volatile, ranging from $6.66-$7.05, before settling at $6.850/MMBtu on the day.

 

Market Update 04 27 2022

Market Settles 04 26 2022

 

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