With little support from forecasts showing a warm pattern moving in during the first week of April, natural gas futures were trading slightly lower early Tuesday. The soon-to-expire April Nymex futures contract was down 0.5 cents to $2.750/MMBtu at around 8:30 a.m. ET, while the May contract was off 0.6 cents to $2.768.
Articles from April
April natural gas storage injections could prove to be the lowest for the fourth month of the year since 1983, the Energy Information Administration (EIA) said Tuesday.
April NatGas Forwards Mostly Lower on Robust Supply; Some Markets Surge on Depleted Storage, Pipe Restrictions
April natural gas prices fell an average 6 cents from March 16-22 as not even a cold weather forecast for early April could turn traders’ attention from near-record production, according to NGI’s Forward Look.
Natural gas forward prices for April averaged 2 cents higher from Feb. 23 to March 1 as March comes roaring in like a lion, with several cold snaps following a mostly mild February, which could perhaps lead to heftier storage withdrawals in the coming weeks, according to NGI’s Forward Look.
Compared with one year ago, the U.S. land-based rig count is up 125% as drillers continue returning to their favorite shale patches. Over the same period, the U.S. offshore rig count has languished, up two units during the week ending Friday but still down by one rig from a year ago, according to Baker Hughes Inc.
The U.S. land-based rig count posted a modest gain of four during the week just ended, according to Baker Hughes Inc. (BHI), and the pace of rig gains could slow in the months ahead, according to some. Meanwhile, analysts are awaiting the additional gas supply yet to come from rigs already added.
The U.S. natural gas rig count added two units during the week just ended, according to Baker Hughes Inc. (BHI). Six oil rigs were added. The gains were modest compared with some recent counts, and a slowing of rig additions could be on the way, some say.
Natural gas futures and forwards markets were lower across the curve for the period between April 13 and 20, with May shedding an average 6 cents as another retraction in the storage surplus and forecasts for mostly mild weather in the coming weeks pressured the market, according to NGI’s Forward Look.
The California Public Utilities Commission (CPUC) said it plans to start hearings in mid-April on the future of Southern California Gas Co.’s (SoCalGas) 86 Bcf Aliso Canyon natural gas underground storage facility after a four-month long storage well leak in late 2015 and early 2016. The focus of the case is what role the state’s largest gas storage facility should play in ensuring gas and electric reliability, and whether SoCalGas should be allowed to resume operation of the 3,600-acre facility. A prehearing conference is set for April 17 in Los Angeles with a public participation hearing scheduled for later that evening in Northridge, near the storage site.
A cold weather system that bolstered demand in portions of the United States this week combined with an unusually large storage withdrawal to send April natural gas futures and forwards markets up 9 cents on average between March 17 and 23, according to NGI’s Forward Look.