Articles filed under Natural Gas Prices

Overall physical gas prices fell about a nickel in Monday's trading for Tuesday delivery, but the market was punctuated by wide swings. In western producing regions and California stout double digit gains were seen, but in market areas such as Chicago and the East moderating temperature trends prompted multi-dollar losses at some points. At the close of futures trading April had risen 11.1 cents to $4.536 and May was higher by 8.9 cents to $4.492. April crude oil tumbled 81 cents to $98.08/bbl.

The U.S. Energy Information Administration (EIA) on Friday said it believes that 16% of the natural gas consumed in Europe in 2013 was transported through pipelines that traverse Ukraine.

Physical gas for weekend and Monday delivery on balance posted solid gains in Friday's trading. East and Northeast locations were expected to see another round of plunging temperatures towards the end of the weekend and into Monday, and New England points led the day's advance with double-digit dollar gains.

While there are risks inherent in finding the yellow brick road to global energy growth, U.S. natural gas demand is likely to take off between now and 2020, a Goldman Sachs economist told an audience Tuesday at the LDC Gas Forum Rockies & West meeting in Los Angeles.

Physical natural gas for next-day delivery overall fell an average 2 cents Wednesday led by declines at Northeast points. Most locations fluctuated within a few pennies of unchanged and even a fire in on a Midcontinent natural gas pipeline failed to have much market impact. Eastern points were steady to lower and California locations proved firm to higher.

The Henry Hub spot price for natural gas is expected to increase to $4.00/MMBtu next year, compared with an estimated $3.71/MMBtu this year and an average $2.75/MMBtu in 2012, according to the U.S. Energy Information Administration (EIA). Those projections are both higher than EIA had expected last month, when it estimated 2013 to be $3.68/MMBtu and 2014 to be $3.91/MMBtu (seeDaily GPI, Sept. 11).

Physical natural gas prices for Wednesday delivery followed on the heels of Monday's cash and screen strength and added on average another 9 cents Tuesday. With the exception of a few Marcellus points, all locations posted gains with some deep into double digits. Midwest, eastern and Gulf markets all posted hefty gains. At the close of futures trading, November had jumped 8.7 cents to $3.716 and December had added 8.1 cents to $3.869. November crude oil rose 46 cents to $103.49/bbl.

Natural gas is in high demand and growing, but with supplies still expanding with little market incentive, prices may remain relatively muted or depressed for at least a couple more years, according to Credit Suisse analysts.

Physical natural gas for Tuesday delivery jumped 10 cents Monday with practically all points well into the black and some locations solidly into double-digit gains. Traders wearing both cash and futures stripes were circumspect, with some noting a seasonal tendency for prices to advance. Also in play was the development of a system in the Caribbean southwest of the Cape Verde Islands.