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Daily Market Update March 15, 2022

Early Morning Update

The Apr ‘22 natural gas contract is trading down $0.12 at $4.54.  The Apr ‘22 crude oil contract is down $6.41 at $96.60.

Summary

The Apr '22 NYMEX natural gas contract slid over six cents yesterday, closing out at $4.658/MMBtu, and the balance of 2022 as a whole similarly lost seven cents. That weakness trickled out into next winter with Q1 '23 losing 7.5 cents, but the weakness abruptly stopped there as Apr-Dec '23 remained flat day-over-day. Longer terms beyond 2024 all moved in the reverse direction, with 2025 gaining two cents and 2026 - 2030 all gaining four cents each. Near-term weather forecasts are finally showing broad warmth to the tune of five to eight degrees above normal for much of the Midcontinent and Northeast through this week. That warmth is expected to stick around through the middle of next week, and even expand further south along the East Coast. If current weather forecasts hold true, that could bring some relief from the demand side and potentially lead to more softening at the front of the NYMEX curve. Dry production continues to be a bullish fundamental for the market, given the tight supply demand balance. However, rig counts for both oil and natural gas rigs have been increasing, which should be an optimistic sign for future production growth. The main question on everyone's mind though is when will we see this growth in production be realized in the market?

 

Market Update 03 15 2022

Market Settles 03 14 2022

 

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