Daily Market Update May 18, 2022
Early Morning Update
The Jun ‘22 natural gas contract is trading up $0.18 at $8.48. The Jun ‘22 crude oil contract is up $2.13 at $114.53.
Summary
Yesterday saw another day of volatility and upward movement for NYMEX as the prompt month traded as high as $8.37 MMBtu before closing for the day at $8.304, representing a gain of just under 35 cents. The twelve month strip followed closely behind as it moved up 29 cents with all months through February 2023 now well above the $8 mark. From February to March there is a $3.31 spread. The momentum continued to the forward cal strips as 2023 moved up 15.6 cents, 2024 added 7 cents, and 2025- still the low strip, gained just over 4 cents to $4.168. The curve flattened beyond there with slight downward movement of around a penny from 2026-2028 but then a big jump up for the end of the curve with 2029-2034 jumping up almost 14 cents. On the fundamental side, the supply/demand balance is tightening as production moved slightly lower to 93.4 Bcf/d after averaging 93.8 Bcf/d for the past seven days and demand is increasing, being led by the export sectors, powerburn demand from generators, and residential and commercial demand.
Loading please wait...