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Daily Market Update January 19, 2022

Early Morning Update

he Feb ‘22 natural gas contract is trading up $0.04 at $4.32.  The Feb ‘22 crude oil contract is up $0.77 at $86.20.

Summary

ello, Father Winter! The blasts of cold that have been hitting the majority of the eastern half of the country are a reminder that winter has just begun. January is coming in quite cold, bringing snow for most eastern states and follows the second warmest December on record dating back to 1950. For the next two weeks, current forecasts are showing some moderating of temperatures, which should be a welcomed relief barring any major forecast changes. On Sunday, LNG exports reached a fresh all time high of 13.2 Bcf/d, and are expected to continue to remain near maximum capacity as the delta to global pricing remains quite large. Global demand is still high - Europe is seeing a shot of cold, while Asia is seeing some moderating forecasts. While U.S. demand continues to be at peak levels compared to the last five years, production is slipping due to freezing temperatures leading to a tightening in the market. U.S. dry production has dipped below 92 Bcf/d, down from the peak in late December, most likely caused by caused by well head freeze-offs due to the cold in the Northeast and down into Texas. The NYMEX natural gas futures price for February moved up 2.1 cents yesterday, settling at $4.283/MMBtu. The EIA storage report tomorrow is expected to report a withdrawal of around 190 Bcf, much higher than the 167 Bcf 5-year average benchmark, as well as the 179 Bcf pull seen for the same week last year.

 

Market Update 01 19 2022

Market Settles 01 18 2022

 

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