The February 2021 NYMEX natural gas contract settled at $2.760/MMBtu.
This is an increase of $0.293 cents versus the January 2021 NYMEX settlement price.
As of 12:00 p.m. EST today, the March 2021 NYMEX natural gas contract is trading at $2.629/MMBtu, which is down $0.035 cents for yesterday’s settle.
Yesterday’s natural gas storage report from the U.S. Energy Information Administration (EIA) forecasted a withdrawal of 138 Bcf. However, the withdrawal was 128 Bcf. This is one of the reasons why the natural gas futures are trading down.
However, we are encouraging businesses to assess their risk tolerance at this time. The reasons why are:
- Weather – The possibility of a polar vortex has changed course. Relatively warmer weather conditions exist along the east coast over the next 8 to 10 days.
- Demand – Demand for natural gas usage has eased due to the return of seasonal temperatures later this weekend and into next week.
- Oil and Natural Gas Leases – There is valid concern over President Biden’s ban on fracking on federal lands and his executive order that put a hold on new oil and natural gas leases on public lands and offshore waters and the impact of this on natural gas futures prices.
If you would like to look at your future natural gas or electricity supply pricing, please contact our corporate office at 888-370-8898.