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Daily Market Update February 17, 2022

Early Morning Update

The Mar ‘22 natural gas contract is trading down $0.09 at $4.63.  The Mar ‘22 crude oil contract is down $1.96 at $91.70.

Summary

The NYMEX natural gas prompt month contract experienced a third straight day of gains by ticking up $0.41 and settling at $4.717/MMBtu yesterday. The 12-month strip also reacted bullishly and gained $0.30, along with Cal '23 gaining $0.12. The outer calendar strips also crept up, but not as much, each gaining around two to three cents through 2028. Total natural gas demand may be one of the reasons for the bump in the market since the Midcontinent region's residential/commercial heating demand increased by over 4.0 Bcf/d yesterday. When looking at the near-term weather forecasts, the chance for colder-than-normal conditions in the MidCon linger into next week, and it's looking like the West may experience a fairly significant cold shot next week, too, if these weather forecasts hold true. Later this morning, the U.S. Energy Information Administration will be releasing their weekly storage report, where market participants are expecting a withdrawal in the ballpark of 197 Bcf to be reported for the week to Feb 11. If this actualizes, it would end the 4-week streak of 200+ Bcf draws, but, unfortunately, would still be larger than the five-year average, thereby growing the existing deficit.

 

Market Update 02 17 2022

Market Settles 02 16 2022

 

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