Natural gas cash point averages across the country ballooned on Monday as a storm that brought multiple feet of snow as well as temperatures in the teens to the Midwest moved toward eastern markets. Most points across the country for Tuesday delivery climbed between a dime and 20 cents, while some spots in the Northeast shot higher by $7 to $11.
Averages
Articles from Averages
Cash Points Decline Except for in Heat-Ravaged West
Feeding off of Friday’s new lows for the down-leg in natural gas futures, a vast majority of cash market averages followed suit on Monday with most points declining from a few pennies to nearly a dime. Out West the tune was a little different as most points gained at least a nickel as the region faced some of the warmest temperatures it has seen all summer.
Cash Strength Continues as Futures Reach Two-Month High
With natural gas futures playing a supportive role on Monday, cash point averages on Tuesday for Wednesday delivery continued to record increases across the board.
Cold Snap, Supportive Screen Sends Market Significantly Higher
Cash point averages on Monday for Tuesday delivery roared back into the plus column with most spots tacking on 15 to 20 cents across the country, leaving many traders “scratching their heads.”
Large Storage Build Helps Sink Cash Points
Aided by moderate screen weakness the prior day, cash point averages on Thursday for Friday delivery came off a couple of pennies at a majority of locations with one point apiece in the Northeast, Texas, Rockies and the West shedding a dime while Dawn in the Midwest dropped 20 cents.
Market Moves Higher Again But Loses Futures Support
Despite record levels of natural gas in underground storage caverns, cash market averages on Tuesday for Wednesday delivery continued to push higher with most points gaining 40 to 50 cents. However, the prior-day 26.9-cent November futures increase that supported Tuesday’s cash move will be missing Wednesday as the prompt-month contract dropped 10.7 cents on Tuesday to $4.880.
EIA: Sub-$4 Gas Through Late 2009; Nearly $6 in 2010
With consumption expected to decline by 2.3% this year and inventories remaining well above five-year averages, the monthly average Henry Hub natural gas spot price is expected to remain below $4/Mcf until late in the year, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for July.
EIA: Sub-$4 Gas Through Late 2009; Nearly $6 in 2010
With consumption expected to decline by 2.3% this year and inventories remaining well above five-year averages, the monthly average Henry Hub natural gas spot price is expected to remain below $4/Mcf until late in the year, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for July.
Most Cash Points Creep Higher Despite Ample Gas Supply
Most cash market points went back to reporting gains Thursday after mixed action during Wednesday. The strength in cash averages occurred despite the bearish fact that the market had to digest its fifth straight triple-digit natural gas storage report (see related story).
Most Cash Points Decline as ‘Fair Value’ Debated
Cash traders on Wednesday watched most delivery point averages across the country slip by a few pennies to nearly 40 cents, but afternoon news of a pipeline-impacting explosion in the Gulf of Mexico could rattle some cages on Thursday.