Near Term Key Points
Weather – NOAA’s 8-14 day outlook shows average to below-average temperatures for the majority of the country to start January. So after weeks of storage draws that have been below average for this time of year, it looks like winter may finally arrive leading to increased heating demand. The hint of chilly weather may push prices upward to start 2022. But if one thing is certain, it’s that uncertainty is a constant when it comes to both weather and the market…
International Prices – After record-setting European natural gas prices that spiked more than 400% over the last year, U.S. LNG deliveries eased supply concerns and led to some price relief. Even as additional deliveries are scheduled for upcoming weeks, prices remain well above average. Political tensions over final approval for the NORD Stream 2 pipeline have positioned natural gas as a Russian tool to secure their interests. While Vladimir Putin maintains Russia has the capacity to meet European supply needs, pipeline flows have been halted in recent weeks.
Natural Gas Futures Quick Look
MAR22, settled at $3.696/Dth down 1.7 cents
APR22, settled at $3.645/Dth up a penny
MAY22, settled at $3.667/Dth up 1.8 cents
JUN22, settled at $3.716/Dth up 1.9 cents
Natural Gas Market Report – December 30, 2021
February NYMEX
January moved off the board Wednesday, December 29th, settling the month at $4.024/Dth.
February settled Wednesday at $3.850/Dth down 3.5 cents from Tuesday’s close at $3.885/Dth.
12 Month Strip
Settled Wednesday at $3.810/Dth, up 1.6 cents from the prior week.
Seasonal Strips
The balance of the winter strip settled Wednesday at $3.857/Dth, up less than a penny from the week prior. The summer strip (APR22-OCT22) settled Wednesday at $3.737/Dth, up 1.8 cents from the week prior.
Calendar Years 2022/2023/2024
CY22 settled Wednesday at $3.810/Dth, up 1.6 cents from the prior week.
CY23 settled Wednesday at $3.413/Dth, unchanged from the prior week.
CY24 settled Wednesday at $3.141/Dth, down 6.2 cents from the prior week.
Crude Oil
Settled Thursday at $76.56/barrel, up $3.80 from the prior week.
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