Basis

Physical gas for delivery Thursday worked lower with wide differences between regions. Overall, the market shed 2 cents to $2.70, but losses in the East and Northeast averaging about 20 cents were almost completely offset by broad, but smaller gains in the Gulf, Midcontinent, Midwest, Rockies and California.

Possibly on expectations of warmer weather, Transco Zone 6 NY’s August natural gas basis pricing has been on the rise, moving up 29 cents from minus $1.161 to minus $0.870 since the August contract became prompt. However, erasing the deficit to the Henry Hub completely is not likely to happen till late fall, according to NGI’s analysis of forward prices.

Natural gas fixed forward prices all followed Nymex futures lower this week, but a couple of points posted even sharper declines as mild forecasts and the earlier-than-normal return of nuclear generation added pressure to those markets.

Natural gas fixed forward prices all followed Nymex futures lower this week, but a couple of points posted even sharper declines as mild forecasts and the earlier-than-normal return of nuclear generation added pressure to those markets.

Natural gas forwards markets remained painfully quiet during the last week of April as only a handful of Northeast points shifted more than a few cents.

Natural gas forwards markets remained painfully quiet during the last week of April as only a handful of Northeast points shifted more than a few cents.

Traders in the natural gas forward market eyeing May, June and the remainder of the summer strip don’t seem to be expecting much in the way of surprises. Some obvious considerations seem to be the degree to which reductions in industry capital expenditures will reduce production, the usual hurricane forecasts and the weather in general.

Traders in the natural gas forward market eyeing May, June and the remainder of the summer strip don’t seem to be expecting much in the way of surprises. Some obvious considerations seem to be the degree to which reductions in industry capital expenditures will reduce production, the usual hurricane forecasts and the weather in general.

May natural gas is set to open 5 cents lower Wednesday morning at $2.63 as traders retool their forecasts and incorporate an upcoming warming trend. Overnight oil markets fell.