Natural Gas Traders Unwind Long Positions, Send Forwards Prices Tumbling as Weather Forecasts Warm

Wrapping up one of the warmest Novembers in U.S. history, natural gas winter forward prices plunged during the Nov. 25-Dec. 2 period as the weather outlook for December grew milder, according to NGI’s Forward Look. January prices averaged 18.0 cents lower over the period, which included the extended Thanksgiving holiday, while the balance of winter…

LNG Demand Not Enough to Stop Natural Gas Forward Price ‘Meltdown’

A balmy weather outlook that was seen potentially extending through the first third of December weighed heavily on natural gas market sentiment during the Nov. 12-18 period, sending forward prices crashing down by an average of 36.0 cents, according to NGI’s Forward Look. Similar to the prior week, the steepest losses occurred in Appalachia. However,…

November 19, 2020

Brief Cold Snap, Record LNG Demand Combine to Lift Natural Gas Forward Prices

For all the intraweek volatility in the natural gas forward markets, prices ultimately capped the Nov. 5-11 period moderately higher as chilly weather crept back into the long-range forecast, according to NGI’s Forward Look. Though the colder weather may not last, Appalachia markets rallied sharply as the expected drop in temperatures coincided with gas flow…

November 12, 2020

Natural Gas Forward Prices Plunge as November Warmth Nearing Record

“Insanely tight” supply/demand balances notwithstanding, weather dominated natural gas forward markets for the Oct. 29-Nov. 4 period. With an extremely mild forecast for the next two weeks at least, prices for December and the remaining months of winter fell sharply. Smaller, single-digit losses were seen further out the curve. The steep declines mimicked the slide…

November 5, 2020

Nymex Natural Gas Futures Steady, but Weak Demand, Supply Cuts Spook Some Forward Markets

Natural gas forward markets were lower for the Oct. 22-28 period as lackluster demand in key demand regions of the Lower 48 tempered prices, according to NGI’s Forward Look. Losses were mostly pronounced in the Northeast and in the Permian Basin, where pipeline work sparked increased volatility this week. Most of the price action was…

October 29, 2020