Bill Burson

Gas for Friday and the extended weekend found few buyers as weather forecasts called for a sharp drop in temperatures Friday.

Although many points showed double-digit losses for the abbreviated trading week ended July 3, theNGINational Weekly Spot Gas Average slippeda modest nickel to $4.23. Early in the week it looked like some eastern points would be strong, having to endure warm temperatures and highheat rates, but later in the week Hurricane Arthur threw a wet blanket on demand at a number of market points.

August natural gas is expected to open 3 cents lower Wednesday morning at $4.42 as traders factor in the likelihood of another voluminous storage report on Thursday along with the possibility of a demand-dampening storm impacting the East Coast. Overnight oil markets retreated.

Physical gas prices for Thursday delivery fell hard Wednesday as the impact of Tropical Storm Arthur reverberated through short-term weather forecasts. Eastern and Northeast points were the hardest hit, as the storm was expected to travel up the East Coast and cause rain and thunderstorms across major population centers.

August natural gas is expected to open 5 cents lower Tuesday morning at $4.41 as traders factor in reduced industrial demand over the upcoming holiday weekend and discount tropical activity. Overnight oil markets rose fractionally.

Nationally, July bidweek averages slipped, but those traders and marketers fortunate enough to be selling gas to the “hot” California market saw bidweek quotes rise well into double digits. Outside of the West, strong production, temperate weather and a continuous stream of weekly triple-digit storage injections combined to push NGI’s National July Bidweek Average down 10 cents from June bidweek to $4.02.

Physical trading for Wednesday followed a mixed path as forecasts of hot, humid weather at Northeast and East points were unable to prompt a continuation of the meteoric gains recorded Monday.

August natural gas is set to open a penny higher Monday morning at $4.42 as market bulls lick their wounds from last week’s 14-cent loss and scour the market landscape for any sign of increased demand. Overnight oil markets fell.

Physical gas for Tuesday delivery jumped higher in Monday’s trading, led mainly by weather-driven gains in the East and Northeast. Forecasters called for warm, humid conditions across major eastern power grids, and a strong power environment helped buttress the spot gas market. Gains also hit triple digits in the Mid-Atlantic, and more modest advances were seen in the Great Lakes, Midwest and the producing regions. The overall market gain came in well ahead of 20 cents.