Bill Burson

Physical natural gas for Tuesday delivery vaulted higher in Monday’s trading as weather forecasts called for a midweek cooling trend in key eastern markets and the physical market played “catch-up” to the screen’s 21-cent surge on Thursday.

May natural gas is set to open unchanged Thursday morning at $4.53 as traders expect a government storage report to show increases that were about in line with long-term averages yet well short of levels needed to fully restore working gas inventories. Overnight oil markets slumped.

Natural gas futures bounded higher Thursday after the release of government storage figures showing a build that was far less than what traders were expecting.

Packages of physical natural gas for the extended holiday period fell hard and fell often in Thursday’s trading. Not one market point traded in positive territory as weekend temperature forecasts turned mild and buyers saw no need to extend themselves by making purchases of gas they may have to turn back on Monday.

At the end of the abbreviated trading week ended April 17, physical traders must have been more focused on Easter eggs and chocolate bunnies than trading natural gas as all regions of the country posted small changes ranging from a loss of a couple of pennies to gains of just over a dime. Nationally theNGI Weekly Spot Gas Average gained a nickel to $4.60.

May natural gas is expected to open 2 cents higher Wednesday morning at $4.59 as traders begin to focus on upcoming storage reports for any signs that injections might not fall into alignment with elevated production. Overnight oil markets rose.

Physical gas for delivery Thursday fell across a wide front in Wednesday’s trading as a modest warming trend was expected in Midwest energy markets. Only a handful of locations escaped the price cleaver, and the most severe declines were seen in the Northeast, with some points dropping by more than $1.00.

May natural gas is set to open a penny higher Tuesday morning at $4.57 as traders discount the breach of a monthly trend line and mull increased storage injections. Overnight oil markets slumped.

Gas for next-day delivery advanced at nearly every market point in Tuesday’s trading. Only a handful of points fell into the loss column, and the gains were broad and pervasive.