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Daily Market Update February 04, 2022

Early Morning Update

The Mar ‘22 natural gas contract is trading down $0.08 at $4.80.  The Mar ‘22 crude oil contract is up $1.85 at $92.12.

Summary

Another day of huge volatility, this time with prices declining.  The prompt month fell $0.613 and the 12 month strip fell $0.324.  This after a day with a huge rally, highlighting the massive swings that have been occurring on a daily basis.  Weather forecasts, storm activity and higher demand are all causing strength and volatility.  Also, the EIA reported a very large draw of 268 Bcf yesterday, slightly lower than expectations but still a large draw by historical standards.  Storage estimates for the next two weeks call for draws of –214 and –242.  We’re also closely following the winter storm and its impact, especially in Texas.  The worst of the cold, and highest demand, was forecast for this morning with the load expected to crest 73GW, but load has been underperforming and current intra-day forecasts are calling for a peak of 67GW.  At that level, reserves appear sufficient to meet demand and as of now, price spikes are not occurring.  We’ll continue to monitor and if you have questions, please reach out to your Direct Energy or NRG representative.

 

Market Update 02 04 2022

Market Settles 02 03 2022

 

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