Daily Market Update March 11, 2022
Early Morning Update
The Apr ‘22 natural gas contract is trading up $0.10 at $4.73. The Apr ‘22 crude oil contract is up $0.12 at $106.14.
Summary
The NYMEX natural gas prompt saw some volatility this week. Henry Hub started the week falling about $0.18/MMBtu following weekend warmth. Tuesday saw its own bearish movement as it fell $0.306/MMBtu. Unfortunately the last couple days saw flat then bullish retracement up $0.105/MMBtu to a settle price at $4.631/MMBtu. Looking forward, this weekend has cold forecasts covering the vast majority of the country and could potentially bring further price volatility for regional and NYMEX pricing. Though gas has seen some movement, further changes can be seen in regional power prices as well. Index prices are often moved by shifting weather patterns and regional gas prices. With all this volatility organizations should consider discussing their power and natural gas positions with their Account Executives and finding a good risk mitigation strategy with their Energy Strategist if possible.
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