April natural gas is set to open 3 cents lower Wednesday morning at $4.38 as traders discount a somewhat cooler, though mixed weather outlook. Overnight oil markets rose.
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Natural gas marketers continued to report significant declines in sales in the last three months of 2013 compared with 4Q2012, and the top three marketers — BP plc, Shell Energy NA and ConocoPhillips — were among those with the largest declines, according to NGI’s 4Q2013 Top North American Gas Marketers Ranking.
Weather from October to February east of the Rocky Mountains was significantly colder than last winter — and colder than the average for the past 10 years — and the resulting surge in natural gas consumption will drive working inventories at the end of March down to 965 Bcf, according to the Energy Information Administration (EIA). But don’t expect higher natural gas prices, the agency said.
In Pennsylvania lines of tubing, trucks, overturned dirt and newly-dug deep trenches along rural stretches of land are a common sight and one that’s expected to continue as the midstream buildout to carry natural gas away from Marcellus production sites is far from over.
A seismic shift in the Northeast natural gas market likely will lead to substantial and broad-based seasonal price differentials all the way to Western Canada, Raymond James Inc. analysts said Monday.
February natural gas is set to open 4 cents higher Tuesday morning at $4.37 as traders assess oncoming cold in pivotal eastern markets and factor in a greater cold event than earlier expected. Overnight oil markets rose.
Natural gas and oil production from wells in six domestic shale plays/basins will continue to edge higher in February, buoyed in large part by the Marcellus, Eagle Ford and Bakken, according to estimates released Tuesday by the Energy Information Administration (EIA).
Midstream companies are adding infrastructure and working to give producers options in the Marcellus and Utica shales, but some are concerned that construction isn’t keeping pace with production, a scenario that could lead to the bottom falling out on natural gas prices, something already seen.