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Daily Market Update January 07, 2022

Early Morning Update

he Feb ‘22 natural gas contract is trading up $0.09 at $3.90.  The Feb ‘22 crude oil contract is up $0.76 at $80.22.

Summary

he prompt month and 12 month strip both fell yesterday after a bearish storage report by the EIA.  A draw of 31 Bcf was reported yesterday, lower than expectations and well off last year, -127, and the 5-year average, -108.  Temps were mild and holiday vacations led to very low demand across much of the country.  Storage is now nearly 100 Bcf higher than the 5-year average and only 154 Bcf behind last year.  Estimates for end/winter storage are roughly 1.6 Tcf - below last year and the 5-year average, but significantly better than estimates going into winter.  But temps have turned colder in the east and demand is higher, as evidenced by the day-ahead prices.  Cold temps are forecast for the east for much of the next two weeks and estimates for the storage reports reflect the higher anticipated demand.  The next three reports are forecast at –181, -206 and –184.  Index prices for gas and power are likely to be higher as well, along with colder temps and higher demand.

 

Market Update 01 07 2022

Market Settles 01 06 2022

 

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