Forward Look

Natural Gas Forwards Nosedive on December Warmth, But Global Prices Still Seen Posing Risks

Natural Gas Forwards Nosedive on December Warmth, But Global Prices Still Seen Posing Risks

The natural gas market returned from Thanksgiving seemingly ready to pull the plug on winter.  Amid forecasts insisting on a milder December pattern that would substantially mitigate risks of a winter supply crunch, natural gas forwards dropped sharply during the Nov. 24-Dec. 1 trading period, NGI’s Forward Look data show. Henry Hub fixed price forwards…

December 3, 2021
Natural Gas Forwards Discounts Deepen, but Westcoast Reductions Spur Rally in Pacific Northwest

Natural Gas Forwards Discounts Deepen, but Westcoast Reductions Spur Rally in Pacific Northwest

Natural gas forward prices recorded a third straight week in the red as weather models continued to show variability in the forecasts, rather than sustained cold. Liquefied natural gas (LNG) demand, meanwhile, neared all-time highs as production fluctuated but stood well off summer lows. All the gyrations in the supply/demand balance left the December forward…

November 19, 2021
Natural Gas Forwards Plunge Further as Supply Improvements, Mild Weather Reduce Winter Risk

Natural Gas Forwards Plunge Further as Supply Improvements, Mild Weather Reduce Winter Risk

A persistently mild forecast continued to grip U.S. natural gas forwards markets during the Nov. 4-10 period, extending losses across the curve as supply neared pre-pandemic highs. December prices plunged an average of 97.0 cents, with losses upward of $2.00/MMBtu in the Northeast amid the comfortable weather pattern and weak cash pricing, NGI’s Forward Look…

November 12, 2021
Natural Gas Forward Prices Soften on Lack of Cold, but Strong Export Demand to Continue

Natural Gas Forward Prices Soften on Lack of Cold, but Strong Export Demand to Continue

A steep sell-off early in the Oct. 28-Nov. 3 period because of generally unsupportive weather sent natural gas forward prices tumbling by double digits. December forward prices plunged an average 17.0 cents, while the balance of winter (December-March) slid 16.0 cents, according to NGI’s Forward Look. Summer (April-October) prices also softened, but losses were smaller…

November 5, 2021
Early November Cold, Contract Expiry Help Spark Sharp Gains for Natural Gas Forwards

Early November Cold, Contract Expiry Help Spark Sharp Gains for Natural Gas Forwards

Flashes of colder temperatures to start the heating season, alongside characteristic volatility coinciding with the Nymex futures contract expiration, propelled natural gas forwards sharply higher during the Oct. 21-27 trading period, according to NGI’s Forward Look data. Fixed price Henry Hub forwards for November rallied $1.087 to reach $6.220/MMBtu during the period, leading a wave…

October 29, 2021
Shrinking Deficit, Bearish Temps Keep Pressure on Natural Gas Forwards

Shrinking Deficit, Bearish Temps Keep Pressure on Natural Gas Forwards

A shrinking storage deficit and fading risks for a frigid start to the U.S. heating season saw front-month natural gas forwards fall sharply during the Oct. 15-20 trading period, NGI’s Forward Look data show. A 51.2-cent decline in November Henry Hub fixed natural gas prices for the period triggered losses of comparable magnitude at hubs…

October 22, 2021
Natural Gas Forwards Retreat on Shrinking U.S. Storage Deficit; Global Market Raises Stakes

Natural Gas Forwards Retreat on Shrinking U.S. Storage Deficit; Global Market Raises Stakes

A narrowing Lower 48 storage deficit saw natural gas forwards ease lower during the Oct. 7-13 trading period, even as global supply anxieties continued to ripple through the domestic market. Front-month forwards at benchmark Henry Hub closed out the trading period 8.7 cents lower week/week amid continued volatility in the market ahead of winter. The…

October 15, 2021
Domestic Supply Fears Easing as Natural Gas Forwards Retreat from Highs

Domestic Supply Fears Easing as Natural Gas Forwards Retreat from Highs

A jittery natural gas market bracing for a winter of extreme pricing turned in a week of volatile trading for the Sept. 30-Oct. 6 time frame, but forward prices trended lower overall as mild weather and rising stockpiles soothed nerves over the domestic supply situation. Forward prices at most trading locations took their cues from…

October 8, 2021
Global Supply Fears Drive Huge Gains for U.S. Natural Gas Forwards Despite Improving Lower 48 Backdrop

Global Supply Fears Drive Huge Gains for U.S. Natural Gas Forwards Despite Improving Lower 48 Backdrop

Fueled by a potential wintertime energy shortage overseas, U.S. natural gas forward prices rebounded sharply from the prior week’s bruising. November prices surged by an average 42.0 cents during the trading period from Sept. 23-29, while the winter strip (November-March) jumped 49.0 cents on average, according to NGI’s Forward Look. Gains at the front of…

October 1, 2021
Natural Gas Forward Prices Starting to Crack, but Supply Concerns Still Festering

Natural Gas Forward Prices Starting to Crack, but Supply Concerns Still Festering

After four solid weeks of steep increases, natural gas forward prices buckled during the trading period ending Tuesday as the start of the fall season ushered in cooler weather and a decline in demand. October prices plunged an average of 54.0 cents from Sept. 16-21, while November tumbled 55.0 cents on average, according to NGI’s…

September 23, 2021