Articles filed under Natural Gas Prices

Unusually cold weather that remained in place over portions of the country into the last days of winter helped drive working natural gas in storage to an estimated 826 Bcf at the end of March, the lowest level in 11 years. But a rebuild of nearly 2,600 Bcf over the injection season is expected to push inventories up to 3,422 Bcf by the end of October, according to the Energy Information Administration (EIA).

Gas for delivery Wednesday overall added a few pennies as futures continued a second straight day of advances and longer-term weather forecasts called for some uncharacteristic coolness.

Physical gas for Tuesday delivery posted a modest advance of a few pennies, but the day's greatest individual gains were seen in California as well as in producing regions that feed the southern California market. Gains overall were widespread, in part mirroring the strong futures, and only a small minority fell into the loss column. At the close of futures trading May had risen 3.7 cents to $4.476 and June had gained 3.5 cents to $4.502. May crude oil fell 70 cents to $100.44/bbl.

Going into the weekend and Monday, buyers on Friday were still reluctant to aggressively seek incremental volumes in spite of weather forecasts calling for below-normal temperatures at some points.

Physical gas for Friday delivery traded higher Thursday as a strong futures open hinted at further gains in both the cash and futures arena. Advances were seen at nearly all market points, and overall the physical market added about a nickel.

Overall next-day physical prices added about a penny on average Wednesday for Thursday trading as temperature outlooks gravitated toward “normal.” For the most part, prices fluctuated within a dime in either direction, with most points adding or losing a few pennies. Gulf Coast, Rockies, Midcontinent and Northeast points inched higher, while Midwest and California spots dipped into the red.

Physical natural gas prices continued Monday's decline in Tuesday's trading as forecasts of warming trends provided little to no incentive to make purchases on the next-day market. A few points in Appalachia and the Marcellus, along with some isolated Rockies locations were able to escape the price cleaver, but otherwise the selling was broad and pervasive.

Spot gas prices for Tuesday delivery moved higher in Monday's trading as weather-induced strength in the Plains, along with strong performances at eastern, Northeast and Marcellus points, was able to offset broad weakness elsewhere. At the close of futures trading, May was down by 11.4 cents to $4.371 and June had fallen 11.5 cents to $4.404. May crude oil retreated 9 cents to $101.58/bbl.

Natural gas futures traders on Friday were taking a second look at Thursday's bullish exuberance, and it appears the conclusion they reached was that the move was overdone.

Physical gas prices fell again in Thursday trading for Friday delivery, but most of the hard selling occurred in the Northeast where some points suffered multi-dollar drubbings.