Averages

Most cash market averages inched lower Tuesday with the exception of a handful of Northeast points, much of the Midcontinent and California locations, which posted gains.

Cooling the streak of price firmness exhibited on Monday and Tuesday, natural gas cash averages across the United States dropped for the second straight day on Friday as summer-like temperatures dominated much of the country and Thursday’s news of an early start to the storage injection season began to fully sink in.

Cash market averages Wednesday for Thursday delivery were mixed but mostly quiet, but operational issues raised prices at points in California. Futures markets drew to a mixed close as bulls continued to cling to technical support levels and bears awaited storage data expected to continue a trend of sub-par withdrawals.

Cash prices played catch-up with exuberant futures Friday as the market digested news of additional production and drilling cutbacks. Cash averages recorded double-digit gains at nearly every point across the country.

Natural gas cash averages for the most part Thursday gained or lost a few pennies, but Northeast points saw double-digit gains as temperatures in New England were expected to drop and pipelines issued curtailments.

November futures plunged Wednesday as traders anticipate an inventory report to not only show additions to storage well above historical averages, but also surpass the record for October. At the close November had dropped 12.7 cents to $3.489 and December had shed 6.8 cents to $3.791. November crude oil fell 24 cents to $85.57/bbl.

After slumping the last two days, natural gas cash market averages across the country staged a meager rebound on Thursday for Friday delivery despite the fact that futures prices continued to decline.

Chilly temperatures kept upward pressure on a vast majority of cash point averages on Tuesday except for a handful of Northeast points, which recorded drops of $2.20 to more than $5 as the coldest temperatures associated with Sunday’s blizzard began to subside.

While much of the East Coast was still digging out from Sunday’s blizzard, as evidenced by some cash point averages jumping several dollars for Tuesday delivery, natural gas futures traders on Monday were focusing on the future, which is why the January contract — a day ahead of expiration — dipped below $4 for the third time in two weeks before rallying to close at $4.112, up 2.9 cents from last Thursday’s finish.