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Daily Market Update March 04, 2022

Early Morning Update

The Apr ‘22 natural gas contract is trading up $0.16 at $4.88.  The Apr ‘22 crude oil contract is up $3.50 at $111.17.

Summary

An uncharacteristically ‘quiet’ on the NYMEX, with the prompt month moving higher by $0.04 to close the day at $4.722.  The market remains edgy as several factors are driving prices and  the trend is far from certain.  The situation in Ukraine is wreaking havoc on the crude market, which is driving gas and power prices.  Cold temps, and the winter that will never end is also propping up prices as demand remains high and forecasts seem like they will never moderate.  The good news is that while forecasts remain below-average, the average temp is moving up as we progress towards spring.  One the flip side, the persistent high prices are causing an increase in drilling activity.  Since just the beginning of the year, shale gas rigs are higher by 12% and gas/crude rigs are up 20%.  This should lead to an increase in production as these assets are brought online and tied into the production infrastructure.  We’ll need the production as demand is set to increase as more export terminals are being construction and global LNG demand soars.

 

Market Update 03 04 2022

Market Settles 03 03 2022

 

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