Natural gas gained ground as LNG exports climbed to record highs.
The Dec-2020 NYMEX natural gas contract closed 2.9 cents lower at $2.859 per MMBtu, extending its losing streak to 6 sessions as the weather forecast continued to call for above-normal temperatures to cover much of the nation into late November. Equity markets soared on investor optimism after Pfizer announced a finding that showed its new COVID-19 vaccine was more than 90% effective. The Dec-2020 WTI crude oil contract bounced $3.15 higher to $40.29 per barrel following the news that could help lead to a stronger economic recovery and increase demand for the commodity.
Natural gas rebounded 9.0 cents to $2.949 as traders covered short positions even as the weather forecast remained solidly bearish for increased heating demand. Crude advanced $1.07 to $41.36 on hopes a coronavirus vaccine would soon be available to help offset the negative demand impacts caused by the pandemic. Equities traded in a mixed fashion as traders became a little cautious following the prior day’s rally on concerns over rising coronavirus cases.
Natural gas pushed another 8.2 cents higher to $3.031 as traders keyed on the surge in liquefied natural gas exports, which stretched to a near-record high. Crude oil gained 9 cents to end the session at $41.45 ahead of the following day’s inventory report, which was delayed one day in observance of the Veteran’s Day holiday. Stocks were mixed on the day as investors balanced vaccine news against rising coronavirus cases.
Natural gas slipped 5.5 cents to $2.976 ahead of the next day’s storage report, which was expected to show a draw in the single digits. Crude prices declined 33 cents to $41.12 after the EIA reported a 4.3-Million-barrel increase in oil inventories. Equity markets fell as investors locked in profits following the recent rally on concerns over states implementing new restrictions to battle the pandemic.
Natural gas inched 1.9 cents higher to $2.995 after the EIA reported a slim 8 Bcf build to storage, which contrasted with the market’s anticipation of a small draw but was not enough to change the current supply and demand narrative. Crude settled 99 cents lower at $40.13 as fears over a slow recovery due to rising coronavirus cases weighed on the commodity. Equities rebound as investors continued to cheer the positive vaccine news from Pfizer.
Natural gas traders continue to look for a shift in the weather forecast for signs of increased heating demand in the East.
Related Content: COVID-19 Resource Center