The extraordinary tumult in the physical natural gas market rippled through the forward curves during the trading week ended Wednesday as hubs throughout the country posted sizable week/week gains in both fixed and basis prices. Prompt-month fixed prices in NGI’s Forward Look rallied by the double digits from coast to coast for the Feb. 11-17…
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Natural Gas Forwards Brush Off Ice, Snow Draping Lower 48; Higher Prices Still to Come
Bitterly cold temperatures blanketed the Lower 48, and the deep freeze threatened to curb output throughout most of the country’s production basins. Long-held storage surpluses have quickly eroded and export demand continues to fire on all cylinders. It was, by all considerations, the perfect storm to send natural gas futures rocketing sharply higher. And yet,…
Polar Vortex Drives Massive Gains for Natural Gas Forwards, but Rally Loses Momentum
Massive snowstorms and intensifying frigid air in the coming weeks amped up the gains for natural gas forwards in the final days of January into early February. March prices averaged 19.0 cents higher for the period, while solid export demand seen this summer (April-October) lifted the strip an average 8.0 cents, according to NGI’s Forward…
Bitter Cold, Strong Export Demand Drive Big Gains for Natural Gas Forwards
With bone-chilling weather finally arriving in the Lower 48, the resulting surge in natural gas demand fueled massive gains across U.S. natural gas forward markets. The February natural gas contract rolled off the board Wednesday at an average 22.0 cents higher than where it started the Jan. 21-27 period. The incoming prompt-month March contract jumped…
Disappointing Weather Outlook Sinks Natural Gas Forwards as Winter Peak Looms
Mother Nature delivered a gut punch to the natural gas market, pulling back on projections for a polar vortex to descend into the Lower 48 by the end of the month. The frigid forecast was seen as the missing link in an otherwise solidly supported market. With only brief cold snaps on the radar, natural…
Natural Gas Forwards Rally Sharply on Sustained LNG Demand, but Market Waiting for More Cold
A four-day winning streak spurred by chillier forecasts for the second half of January resulted in sharp increases in natural gas forward prices. Gains were particularly strong on the East Coast, nearing 60.0 cents at several pricing hubs during the shortened Dec. 30-Jan. 6 trading period, according to NGI’s Forward Look. Nymex futures mounted solid…
Natural Gas Forward Prices Finally Bounce Back on Powerful Snowstorm, Record LNG Demand
Fresh off a record-setting Nor’easter that dumped more snow along the upper East Coast than all the snowstorms in 2019 combined, natural gas forward prices finally snapped a three-week losing streak. January prices jumped 22.0 cents on average between Dec. 10 and 16, while the balance of winter (January-March) climbed 18.0 cents, according to NGI’s…
Another Week, Another Leg Lower for Natural Gas Forwards as Warmth Rules Forecasts
Weather dominated natural gas forward price action for a third consecutive week, sending prices through the winter lower despite record export demand and cuts to production, according to NGI’s Forward Look. However, losses were less severe than the prior two weeks, and prices stabilized a bit for the summer 2021 strip (April-October) and beyond, with…
Natural Gas Longs Scurry for Exits, Send Forward Prices Crashing Lower
Wrapping up one of the warmest Novembers in U.S. history, natural gas winter forward prices plunged during the Nov. 25-Dec. 2 period as the weather outlook for December grew milder, according to NGI’s Forward Look. January prices averaged 18.0 cents lower over the period, which included the extended Thanksgiving holiday, while the balance of winter…
Natural Gas Forward Prices Plummet Despite ‘Resolutely Bullish’ Core Fundamentals
A balmy weather outlook that was seen potentially extending through the first third of December weighed heavily on natural gas market sentiment during the Nov. 12-18 period, sending forward prices crashing down by an average of 36.0 cents, according to NGI’s Forward Look. Similar to the prior week, the steepest losses occurred in Appalachia. However,…