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Daily Market Update January 28, 2022

Early Morning Update

The Mar ‘22 natural gas contract is trading up $0.48 at $4.76. The Mar ‘22 crude oil contract is up $1.65 at $88.62.

Summary

The NYMEX Henry Hub natural gas February 2022 contract expired yesterday with a bang as unprecedented market movement saw a wild trading range of $3.17/MMBtu. This resulted in a settle price of $6.265/MMBtu after moving up $1.988/MMBtu, despite having an average price of $4.019/MMBtu as the prompt month. This movement primarily occurred within the last 30 minutes of the trading day, right before expiry of this contract, leading market analysts to believe that there was technical trading along with panic buying primarily moving the market. The EIA storage report did come in as a higher with a withdrawal of -219Bcf for the week when predictions were expecting a -210Bcf withdrawal. This was not a large enough difference to cause the market movement seen on 1/27/2022. Some concerns are the fact that winter forecasts for February were revised by afternoon time frame to have a colder outlook, while concerns for international demand heightened even further at the same time.

 

Market Update 01 28 2022

Market Settles 01 27 2022

 

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