Deliveries

U.S. dry natural gas production in May reached 2,166 Bcf, or 69.9 Bcf/d — the highest on record for any month — according to preliminary figures compiled by the Energy Information Administration (EIA). Lower 48 gas output came in at 78.10 Bcf/d, a 0.92 Bcf/d increase from April.

Natural gas prices for Friday delivery fell a nickel on average Thursday as most traders elected to get their deals done ahead of a government storage report that was expected to have bearish overtones.

Physical natural gas prices for Wednesday delivery advanced on average another 11 cents Tuesday as continued forecasts for well above normal temperatures along the Eastern Seaboard, combined with the organization of an area of low pressure over the western Caribbean Sea, maintained upward pressure on next-day pricing. With few exceptions, all points were up by a dime or more, and some locations added close to a quarter.

Natural gas prices for physical delivery Friday on average were unchanged in Thursday’s trading. Factor out the extreme low prices at just a couple of Marcellus points burdened by a lack of infrastructure and the physical market on average gained a couple of pennies.

Natural gas deliveries for Thursday added 4 cents on average nationally in Wednesday’s trading, with ongoing warm temperatures in the Midwest keeping buyers busy and next-day deliveries up by a nickel or more.

Physical natural gas prices overall on average added 10 cents Monday as strength at eastern market points along with surging prices at Marcellus locations paced a broad advance. Midcontinent locations were also firm, but all points made gains. At the close of futures trading September had added 2.8 cents to $3.513 and October was higher by 3.2 cents to $3.553. October crude oil fell 50 cents to $105.92/bbl.

Weekend and Monday deliveries of physical natural gas overall on average were 4 cents lower in Friday’s trading for weekend and Monday delivery. Thursday’s screen strength was unable to resonate in the physical market largely as the result of moderating weekend weather forecasts.

Physical natural gas trading Friday for weekend and Monday delivery overall was flat in uninspired trading. With few exceptions, prices flip-flopped within a nickel of unchanged.

Natural gas prices in the physical market overall rose an average of 3 cents on Wednesday for Thursday delivery. Nearly all points posted gains of anywhere from a penny to a nickel with the infrastructure-challenged and unpredictable Marcellus Shale locations recording small losses to double-digit gains and Midcontinent and California points coming in with solid gains.