Jeremiah Shelor

Natural gas futures retreated Wednesday, with bulls hesitating after a swift and decisive double-digit rally a day earlier amid expectations for a slightly above average storage build this week. Lingering heat and pipeline constraints contributed to a day of dynamic price moves in the spot market, including a new record-low in West Texas; the NGI National Spot Gas Average dropped 7 cents to $2.68.

Natural gas futures retreated Wednesday, with bulls hesitating after a swift and decisive double-digit rally a day earlier amid expectations for a slightly above average storage build this week. Lingering heat and pipeline constraints contributed to a day of dynamic price moves in the spot market, including a new record-low in West Texas; the NGI National Spot Gas Average dropped 7 cents to $2.68.

The October natural gas futures contract was trading about 0.7 cents higher at around $2.821 shortly after 8 a.m. ET Tuesday as forecasters pointed to glimpses of fall heating demand showing up in the outlook toward the end of the month.

Going back to last year, natural gas production forecasts based on drilling fundamentals missed key signals from equity markets that had predicted the recent surge in Lower 48 supply, according to East Daley Capital’s Matthew Lewis, who directs financial analysis for the firm.

Don’t call it a comeback, but natural gas futures bulls reasserted themselves Tuesday, seizing on strong cash prices and signs of continued weather-driven demand to rally a market in need of a mild shoulder season to refill depleted stockpiles. Spot prices surged in the Mid-Atlantic as West Texas cash basis weakened; the NGI National Spot Gas Average added 3 cents to $2.75/MMBtu.

With the natural gas demand impacts from former Hurricane Florence’s destruction in the Carolinas appearing less pronounced than previously predicted, shortly before 9 a.m. ET the October futures contract was trading about 2.1 cents higher Monday morning at around $2.788/MMBtu.

Both natural gas futures and physical markets bounced back Monday after posting discounts heading into the weekend, with prices getting a boost from lingering September heat and demand impacts from former Hurricane Florence that proved less extensive than previously predicted. The NGI National Spot Gas Average picked up 18 cents on the day to $2.72/MMBtu.

Both natural gas futures and physical markets bounced back Monday after posting discounts heading into the weekend, with prices getting a boost from lingering September heat and demand impacts from former Hurricane Florence that proved less extensive than previously predicted. The NGI National Spot Gas Average picked up 18 cents on the day to $2.72/MMBtu.

The prospect of demand destruction from Hurricane Florence as it hammered the Carolinas Friday helped send natural gas futures lower, although not enough to break below the recent trading range.