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Daily Market Update January 26, 2022

Early Morning Update

he Feb ‘22 natural gas contract is trading up $0.30 at $4.35.  The Mar ‘22 crude oil contract is up $1.30 at $86.90.

Summary

s below-average temperatures persist through the Midcontinent and eastern United States through the next week, domestic natural gas demand is trending higher this morning by over 10 Bcf/d than earlier this week. The coldest shot is likely this morning into tomorrow, but could stretch into the weekend with the possibility of a Nor’easter hitting the northeastern coastal regions this weekend. So far this month, total U.S. demand, including exports, has averaged 129.6 Bcf/d, compared to January 2021, which averaged a much lower 118.9 Bcf/d. Most of the gains for this year are the direct result of the colder weather (rescomm and power burn sectors are 8.0 Bcf/d higher) and increased LNG exports (2.0 Bcf/d higher). On the supply side of the equation, production continues to lag behind the highs set at the turn of the year, as recent output is averaging between 91-92 Bcf/d, which is about 1.0 Bcf/d lower than the average for the first half of the month. The prompt month price climbed 2.6 cents yesterday to close at $4.05/MMBtu, while the 12-month strip moved up 4.2 cents. The bulk of the upward movement was seen in March ’22 through April ’23, which average 4.6 cents higher. Beyond the near-term, the entire curve moved up 2-3 cents. The low strip on the board remains 2026 at $3.10.

 

Market Update 01 26 2022

Market Settles 01 25 2022

 

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