Natural Gas Prices - March 5

[dan_s]

I love Mother Nature! March weather is causing the NYMEX futures to remain higher than I expected.

From BMO Commodity Market Desk: "The grind higher for natural gas continues as the front rallied .027 to settle at 2.884. The rally was spread driven in nature as Dec19 was basically unchanged on the day. This makes sense given strong short term fundamentals and the April/Oct spread sitting at over .08 contango looking at sub 1.1 Tcf storage level at the end of March stocks. The market likely needs to keep April and May prices supported early in injection season to incentivize fuel switching if possible."

I believe it is going to take much longer than expected to ramp up Permian gas production.

We will be publishing an update profile on Gulfport tomorrow. Take a hard look at their hedges.