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Daily Market Update January 03, 2022

Early Morning Update

he Feb ‘22 natural gas contract is trading flat at $3.73.  The Feb ‘22 crude oil contract is down $0.71 at $74.50.

Summary

e hope all our readers had a wonderful holiday season and Happy New Year! While market liquidity was low over the past two weeks, there were a few newsworthy stories that came up.First, the January 2022 prompt settled at $4.024/MMBtu last Wednesday, significantly less than the Dec 2021 prompt settlement of $5.447/MMBtu. February is now the prompt and it settled under $4 last Friday at $3.73/MMBtu.It’s hard to believe this traded above $5 right after Thanksgiving.On the weather front, December 2021 ranked as a top 10 warmest for many cities in the eastern two-thirds of the US, but old man winter has made an appearance as the new year begins.This morning, the first snowstorm of the season is moving its way through the mid-Atlantic and many areas in the Great Lakes/central U.S. are greeted with low temperatures that are the coldest so far this season. This pattern looks to stay in place for the better part of this week before some moderation looks to set in toward mid-month. Rounding out the fundamentals, the natural gas storage outlook improved, as well, with the above-normal temps outlined above and increased production throughout December. Current inventories started the winter season at 7% and 16% deficits to the 5YA and LY, respectively, but with last week’s storage report, current stocks are now flat with the 5YA and at a 7% deficit to LY. It will be interesting to see if this bearish sentiment continues in the market or if the bulls will return with the colder-than-normal temperatures arriving.

 

Market Update 01 03 2022

Market Settles 12 30 2021

 

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