We saw yesterday’s NYMEX close at $3.886 US/MM, yet another drop over 10¢ and falling below that $4 US/MM threshold, however this may be the lowest we see the NYMEX settle at. Natural gas has rebounded due to near-record gas flows to LNG export plants, boosting futures up 3.2% as of this morning, and is at $ 4.029 US/MM as of writing this update. Meteorologists forecast weather across the lower 48 would remain mostly warmer than normal through until January 1st, keeping the amount of gas needed to heat homes and businesses lower than usual for this time of year which has been reflected in the pricing.

Over the day we saw both crude and natural gas rebound, most likely correlated to President Trump ordering a blockade of U.S.-sanctioned oil tankers going in and out of Venezuela. The risk in disruption of supply for crude has stopped, however in the big picture supply growth is well outpacing demand, and more recently the prospects of a Russia-Ukraine ceasefire has weighed on the prices. Why crude is important to follow is historically the two commodities loosely follow each other, with natural gas usually lagging behind oil’s pricing patterns. (AA)