Bill Burson

Physical gas for weekend and Monday delivery fell like a rock in Friday’s trading. Market points across the board were lower, in some cases by deep double digits, with the East and Northeast taking on the brunt of the selling.

Trading for the week ended June 27 may be something of a watershed for the bulls, with hefty declines in both physical and futures pricing auguring a shift to a lower pricing regime and those campaigning for higher prices based on a large storage deficit throwing in the towel.

July natural gas is set to open 3 cents higher Thursday morning at $4.58 as traders try to juggle last-minute book-squaring with the release of a government storage report that is expected to show inventory increases well above historical norms. Overnight oil markets fell.

Natural gas futures Thursday morning continued the recent tradition of outsize market moves off modest storage injection misses by industry forecasters.

Friday deliveries of natural gas headed sharply lower in Thursday’s trading at virtually all market points as traders made sure they got their deals done prior to the release of government storage data.

July natural gas is set to open 2 cents higher Wednesday morning as traders balance the end of 100-plus Bcf builds in Thursday’s government storage report with weather forecasts showing a cool trend in the nation’s mid-section. Overnight oil markets were mixed.

Physical gas for delivery Thursday made it three straight days of gains in Wednesday’s trading, with the largest advances at Mid-Atlantic and New England locations. Appalachia also firmed, as did prices in the Gulf, and overall the market was 18 cents higher. Healthy gains in next-day power prices, along with higher loads, also contributed to support next-day gas prices. At the close of futures trading, July had advanced 1.8 cents to $4.553 and August was higher by 1.3 cents to $4.569. August crude oil rose 47 cents to $106.50/bbl.

July natural gas is set to open unchanged Tuesday morning at $4.45 as traders sense at least a temporary end to speculative selling and weather forecasts turn slightly warmer. Overnight oil markets firmed.

Physical gas for Wednesday delivery gained ground in Tuesday’s trading with advances across both market centers and producing regions. Largest advances were seen in the Northeast and East as forecasters called for warm temperatures and oppressive humidity.