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Daily Market Update February 23, 2022

Early Morning Update

The Mar ‘22 natural gas contract is trading up $0.07 at $4.57.  The Apr ‘22 crude oil contract is down $0.11 at $91.80.

Summary

Following Monday’s abbreviated trading session, natural gas pricing was very volatile yesterday with the prompt month trading up as much as 43 cents to $4.86/MMBtu early in the day, before sliding to ultimately close with a gain of just 6.7 cents at $4.498. There was similar upward movement out through 2024, with a corresponding easing later on. The 12-month strip gained 7.7 cents, and Cals ‘23 and ‘24 moved up three and one cents, respectively. However, the further out years held onto the initial climb, with 2025 gaining three and half cents and 2026 through 2032 all gaining around four and a half cents. The low priced calendar strip remains 2026 at just under $3.25. The driver for the early day run-up could have been the cold forecasts for next week because, as the day progressed, the updated views saw the cold period moderate. On the supply/demand side, natural gas production has held at 94 Bcf/d for the majority of the past week. Demand is trending higher today, being lead primarily by the Res/Comm sector, as heating demand is climbing as the warm front that started the week across most of the continent is being replaced by colder temperatures. Texas is forecasted to see well-below-average temperatures through the end of the week before the system moves east next week, but not nearly as cold as the earlier cold shots that hit the state this winter.

 

Market Update 02 23 2022

Market Settles 02 22 2022

 

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