Natural Gas Forwards Snap Three-Week Slide, but Gains May Struggle to Hold Given Lacking Cold

Pockets of cold weather combined with rising production and near-record liquefied natural gas (LNG) demand to create a mixed bag of gains and losses for natural gas forward prices for the trading period from Nov. 18-23, according to NGI’s Forward Look. The most significant losses were seen in the Pacific Northwest, where forward prices plunged…

LNG Exports Seen Driving Rare Pricing Behavior at Henry Hub

Amid a growing global reach for U.S. natural gas, and the coincidental timing of gas contract expirations, Henry Hub December basis prices are trading at a rare premium to New York Mercantile Exchange (Nymex) futures, NGI Forward Look data show. Historically, Henry Hub basis tracks within a penny or so of the comparable Nymex contract.…

November 24, 2021

Relentless Sell-Off Continues for Natural Gas Forwards, but Pipeline Issue Rocks Pacific Northwest

Natural gas forward prices recorded a third straight week in the red as weather models continued to show variability in the forecasts, rather than sustained cold. Liquefied natural gas (LNG) demand, meanwhile, neared all-time highs as production fluctuated but stood well off summer lows. All the gyrations in the supply/demand balance left the December forward…

November 18, 2021

Winter Risk Premiums Quickly Fading as Natural Gas Forwards Prices Crater

A persistently mild forecast continued to grip U.S. natural gas forwards markets during the Nov. 4-10 period, extending losses across the curve as supply neared pre-pandemic highs. December prices plunged an average of 97.0 cents, with losses upward of $2.00/MMBtu in the Northeast amid the comfortable weather pattern and weak cash pricing, NGI’s Forward Look…

November 11, 2021

Warm November Outlook, Improved Supply Backdrop Pressure Natural Gas Forward Prices

A steep sell-off early in the Oct. 28-Nov. 3 period because of generally unsupportive weather sent natural gas forward prices tumbling by double digits. December forward prices plunged an average 17.0 cents, while the balance of winter (December-March) slid 16.0 cents, according to NGI’s Forward Look. Summer (April-October) prices also softened, but losses were smaller…

November 4, 2021