Forward Look

Tight Supply, Demand Balance Pushes Natural Gas Forwards Higher

Tight Supply, Demand Balance Pushes Natural Gas Forwards Higher

Mirroring the recent bullish summer run for Henry Hub futures, natural gas forwards rose from coast-to-coast during the June 17-23 trading period. Indications of a tight supply/demand balance, coupled with an overall bullish temperature outlook, saw natural gas prices maintain their upward momentum. Spurred by a bullish surprise in the latest Energy Information Administration (EIA)…

June 25, 2021
Easing Premiums Out West an Exception as July Natural Gas Forwards Climb

Easing Premiums Out West an Exception as July Natural Gas Forwards Climb

Aside from moderating premiums in western markets, natural gas forwards marched higher during the June 10-16 trading period. Supply risks served to push July Nymex prices higher, while technical factors and a somewhat cooler look to the weather picture toward the back half of June helped limit gains. July fixed prices at Henry Hub surged…

June 18, 2021
Summer Heat, Appalachian Supply Concerns Fuel Natural Gas Forward Price Rally

Summer Heat, Appalachian Supply Concerns Fuel Natural Gas Forward Price Rally

Big basis moves in Appalachia and on the West Coast highlighted natural gas forwards trading during the June 3-9 period, while a sufficiently hot forecast helped propel a broader move higher for the Lower 48 overall, according to NGI’s Forward Look. Fixed prices for July delivery were higher week/week by around 10-15 cents at numerous…

June 11, 2021
Natural Gas Forwards Ripe for Further Momentum, but Lack of Heat, Hefty Storage Builds Pushing Back

Natural Gas Forwards Ripe for Further Momentum, but Lack of Heat, Hefty Storage Builds Pushing Back

With hot weather starting to penetrate parts of the United States and export demand expected to return to near-record levels following spring maintenance, natural gas forward prices strengthened for the trading period ending May 26, according to NGI’s Forward Look. Gains were weighted to the front of the curve, with June prices rising an average…

May 28, 2021
California Heat Drives Big Gains for Natural Gas Forward Prices; Exports Fueling Upside Risk for Futures

California Heat Drives Big Gains for Natural Gas Forward Prices; Exports Fueling Upside Risk for Futures

Though widespread summer heat keeps getting kicked down the road, natural gas forward prices strengthened for the trading period ending May 12 as export demand led markets higher. June forwards rose an average 4.0 cents, with similar gains seen through next winter (November 2021-March 2022), according to NGI’s Forward Look. Larger increases were seen in…

May 14, 2021
Natural Gas Forward Curves Hit Pause After Recent Gains, but Backdrop Increasingly Supportive

Natural Gas Forward Curves Hit Pause After Recent Gains, but Backdrop Increasingly Supportive

Shoulder-season doldrums took hold of natural gas forward curves for the trading period ending May 5 as mild weather stole some of the momentum away from strong export demand. June forward prices averaged exactly flat for the period amid a mix of small gains and losses, while the balance of summer (June-October) eked out a…

May 7, 2021
Export Demand Driving Summer Optimism, but Storage Concerns Starting to Simmer

Export Demand Driving Summer Optimism, but Storage Concerns Starting to Simmer

Riding the momentum from rallying futures prices as the natural gas market begins to look optimistically toward summer, forwards firmed by the double digits throughout much of the Lower 48 during the April 22-28 trading week, NGI Forward Look data show. With continued strength in export volumes — via liquefied natural gas (LNG) and pipeline…

April 30, 2021
Modest Recovery for Natural Gas Forwards Foreshadows Increasingly Tight Balances This Summer

Modest Recovery for Natural Gas Forwards Foreshadows Increasingly Tight Balances This Summer

Lingering cold weather and strong export demand fueled a modest rebound for natural gas forward prices across North America during the trading period from April 15-21, according to NGI’s Forward Look. Falling prices on the U.S. East Coast, however, brought the overall average down at the front of the curve, while more notable gains were…

April 23, 2021
Natural Gas Forwards Rally as LNG, Mexican Exports Firing on All Cylinders; Further Momentum Likely

Natural Gas Forwards Rally as LNG, Mexican Exports Firing on All Cylinders; Further Momentum Likely

April chills brought higher futures prices and modest shoulder season gains for natural gas forwards throughout the Lower 48 during the trading week ending April 14, according to NGI’s Forward Look. For the April 8-14 period, fixed prompt-month prices at Henry Hub added 10 cents to average $2.619/MMBtu. Stronger prices at the national benchmark, which…

April 16, 2021
Natural Gas Forwards Slide Amid ‘Sleepy Shoulder Season,’ but Fundamentals ‘Still Look Solid’

Natural Gas Forwards Slide Amid ‘Sleepy Shoulder Season,’ but Fundamentals ‘Still Look Solid’

A major revision in the April weather forecast coming back from the Easter weekend took a big chunk out of natural gas forward prices for the period ending April 8. The short work week ended with the May contract down an average 10.0 cents and the balance of summer (May-October) off 7.0 cents, according to…

April 9, 2021