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Daily Market Update January 13, 2022

Early Morning Update

he Feb ‘22 natural gas contract is trading down $0.26 at $4.60.  The Feb ‘22 crude oil contract is down $0.34 at $82.30.

Summary

older forecast revisions prompted big advances in the short-term natural gas market during yesterday’s trading session, marking the fourth day in the current rally. Most major weather models showed increased confidence for widespread cold during the 6-15 day term, especially across the Midwest and the East.The below-normal weather is expected to stretch into Texas, as well, provoking short-term day ahead prices for the end of January in ERCOT to trade preemptively higher with Uri still within earshot.The February contract approached the $5.000/MMBtu level and climbed $0.608 to settle at $4.857/MMBtu.This is the largest intra-day move the contract has seen since the end of last November during its downslide from the $6.500/MMBtu high.Fears of the upcoming cold snap rippled through the curve until next winter.The 12-month strip climbed $0.269/MMBtu, while the Jan ’23 - Mar ’23 strip also strengthened by $0.162/MMBtu to $4.348/MMBtu, currently the second-most expensive strip on the board, only behind the balance of this winter.Today’s Energy Information Administration (EIA) storage report may not have much influence over downside market movement, as the -181 Bcf expected withdrawal is about 30 Bcf larger than the five-year average for the week ended January 7th.

 

Market Update 01 13 2022

Market Settles 01 12 2022

 

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