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Daily Market Update January 21, 2022

Early Morning Update

he Feb ‘22 natural gas contract is trading up $0.12 at $3.92.  The Feb ‘22 crude oil contract is down $0.62 at $84.93.

Summary

eather forecasts for February 2022 are now coming closer and closer, and meteorologists are beginning to expect an increase in relative temperatures in many parts of the United States. Because of the expected changes, the NYMEX natural gas February contract has seen a decrease of prices down to $3.84/MMBtu after a 22.9 cent change for yesterday's trading hours. As a reminder, on January 12, 2022, prices for the February contract had settled over a dollar higher than current prices at $4.857. This volatility is tracking very heavily with winter forecasts. The EIA storage report did not have much of an effect on the market yesterday, as the report listed a 206 Bcf withdrawal. This leaves current storage at approximately 2.810Tcf left. Current market forecasts for future withdrawals are calling for an end of season estimate of approximately 1.4Tcf, meaning we will be falling below the 5-year average once again due to higher demand. As a result, prices for the remainder of the year have shown strength and the 2023 strip has likewise shown more volatility as market preparation for the next winter are being threatened by this winter's natural gas usage.

 

Market Update 01 21 2022

Market Settles 01 20 2022

 

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