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Daily Market Update March 02, 2022

Early Morning Update

The Apr ‘22 natural gas contract is trading up $0.23 at $4.80.  The Apr ‘22 crude oil contract is up $7.49 at $110.90.

Summary

Temperatures for much of the East Coast have started to feel like spring has sprung, however, it has not brought with it any calm to the market. Near-term pricing remains volatile, feeling upward pressure as production dips once again, and storage levels remain at a large deficit to the 5-year average. Colder temperatures are forecasted to blanket the majority of the western half of the country down into Texas over the next couple of weeks, which most likely will keep heating demand elevated to end the winter season. The NYMEX natural gas futures price for April surged 17.1 cents yesterday, settling at $4.573/MMBtu. The rest of the months of 2022 followed suit, up between 17 to 18 cents. LNG exports remain high as global pricing continues to surge due to growing concerns over supply to Europe from Russia. As of this morning LNG pricing for NBP (UK) skyrocketed, now trading over $50/MMBtu. U.S. dry production is down from the levels seen late last month, averaging just over 93.0 Bcf/d so far for March. As oil prices have climbed over $100 per barrel, there were hopes that associated NG production would increase. However, it seems that producers are facing some setbacks among this high price environment. Most are having trouble hiring crews and procuring sand for fracking, making it extremely hard for the recovery to happen quickly. End-of-season storage projections remain a concern, with expectations moving up slightly, currently at 1,440 Bcf, but much lower than the 1,600 Bcf that was first forecast at the end of last year.

 

Market Update 03 02 2022

Market Settles 03 01 2022

 

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