Daily Market Update January 10, 2022
Early Morning Update
he Feb ‘22 natural gas contract is trading up $0.24 at $4.16. The Feb ‘22 crude oil contract is down $0.20 at $78.70.
Summary
ast week, as the entire country was dealing with colder temperatures, total demand levels were volatile, ranging from 124-139 Bcf/d. This trend continued over the weekend, where total demand jumped by more than 8.0 Bcf/d to 133.5 Bcf/d. This jump in demand was mainly due increases in the Northeast and Midcon Market areas, which saw jumps of 3.6 and 3.9 Bcf/d, respectfully. The lower temperatures continued to be the driving factor of the demand bump in those regions, pushing res-comm demand to near 20 Bcf/d for the Northeast, and 17.3 Bcf/d for Midcon. In comparison, total U.S. power burn and industrial demand saw stagnant rates over the weekend, only increasing by 0.4 and 0.7 Bcf/d to 30.1 and 25.6 respectfully. Likewise, production held at a flat rate throughout last week and is at 92.9 Bcf/d after the weekend. Total supply saw a slight increase as Canadian imports rose 0.5 Bcf/d to 6.5 Bcf/d since Friday. Last week, the market saw a slight increase in price towards the end of the week, but overall prices remain lower than they have been in recent months. This upcoming week will have a mix of weather conditions. The Northeast will continue to have colder temperatures, while warmer temperatures will appear in the Midwest and stay there throughout the week.
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