November natural gas is set to open a penny lower Tuesday morning at $2.91 as weather forecasts prove of little consequence and traders mull purchases.
Articles from Bearish
Outside the Northeast weekly natural gas prices showed broad strength as only five points in California fell into the loss column, and only modestly at best.
April natural gas futures posted a new low for the day Thursday morning after the Energy Information Administration (EIA) reported an unprecedented February storage build, which was greater than the small withdrawal that most in the market were expecting.
Both physical and financial natural gas prices suffered what seemed to be a never ending succession of weather outlooks calling for unusual winter warmth during the week that ended Feb. 17. All points followed by NGI fell into the loss column and the NGI Weekly National Spot Gas Average tumbled 20 cents to $2.75.
Natural gas forwards markets abided by the old adage “what goes up must come down” as January prices plunged an average 44 cents between Dec. 9 and 15 on forecasts for milder weather to close out December, effectively putting prompt-month prices back to where they were at the start of the month, according to NGI’s Forward Look.
Natural gas futures tumbled to session lows Thursday morning after the Energy Information Administration (EIA) reported a storage injection that was about in line with market expectations.
Three-day deals became a tough sell in Friday’s trading as Hurricane Matthew moved up the Florida coast, and gas for weekend and Monday delivery fell by double-digits, although most points declined by a dime or less.
Natural gas futures took a hit Thursday morning after the Energy Information Administration (EIA) reported a storage injection that was a greater than what traders were expecting.
September natural gas is expected to open a penny lower Monday morning at $2.58 as analysts see expected weather demand as capping any concerted price advance. Overnight oil markets were mixed.
Looking at the majority of market points for Tuesday natural gas deliveries, one might conclude it was a lazy summer day’s trading. However, Southern California and New England quickly put that to rest.