Fundamentals

‘Bearish’ Storage Draw, Cold Forecast Leave Futures Virtually Unchanged

Natural gas futures traders on Thursday found themselves caught between opposing fundamentals as a bearish 115 Bcf storage draw report collided with expectations of a wave of lasting wintry cold Friday that was expected to bring heavy snowfalls from Omaha, NE, to Chicago, to Washington, DC, to New York City. The March contract ended up closing the day’s regular session at $5.416, three-tenths of a penny below Wednesday’s finish.

February 5, 2010

‘Bearish’ Storage Draw, Cold Forecast Leave Futures Virtually Unchanged

Natural gas futures traders on Thursday found themselves caught between opposing fundamentals as a bearish 115 Bcf storage draw report collided with expectations of a wave of lasting wintry cold Friday that was expected to bring heavy snowfalls from Omaha, NE, to Chicago, to Washington, DC, to New York City. The March contract ended up closing the day’s regular session at $5.416, three-tenths of a penny below Wednesday’s finish.

February 5, 2010

‘Strategic Changes’ Under Way in Global Gas Markets

The fundamentals of the natural gas industry worldwide have changed, with reduced demand and an oversupply creating a “strategic change” for suppliers and a “tougher” long-term pricing outlook, Wood Mackenzie researchers said in a report.

October 12, 2009

Wood Mackenzie: ‘Strategic Changes’ Under Way in Global Gas Markets

The fundamentals of the natural gas industry worldwide have changed, with reduced demand and an oversupply creating a “strategic change” for suppliers and a “tougher” long-term pricing outlook, Wood Mackenzie researchers said in a new report.

October 9, 2009

Price Drops Expected to Continue

Weak fundamentals and screen guidance drove virtually all points lower Thursday by greater amounts than Wednesday’s losses in nearly all cases, and it’s a virtual certainty that major softness will continue Friday — and very likely through next week.

September 4, 2009

Weak Futures, Weather Load Keep Prices Sliding

Who would have guessed? With weather fundamentals mostly moderate outside the Texas-desert Southwest area and starting to diminish in interior California, and futures guidance remaining quite negative after a 15.6-cent loss by the prompt-month contract a day earlier, cash prices sank again at nearly all points Wednesday.

September 3, 2009

Minor Softness Remains in Most of Market

Prices continued to sink at a large majority of points Tuesday, but mostly by small amounts, as overall weather fundamentals and prior-day futures guidance stayed weak for the cash market. The impending scarcity of storage injection options was another bearish influence.

September 2, 2009

Gas Market Supply/Demand Inflection Point Expected this Month

The inflection point in U.S. gas market fundamentals likely will be realized this month, with the market increasingly undersupplied through the spring of 2010, energy analysts said last week.

July 13, 2009

Prices Bow Again to Generally Mild Weather

After faltering a couple of times earlier in the week, the general bearishness of weather fundamentals reasserted itself Friday. Even with their first prior-day futures support in more than a week, prices fell at nearly all points.

July 13, 2009

Natgas, Crude Values Continue to Erode

Natural gas and crude futures continued to sink on Wednesday as bullish fundamentals for each commodity remained elusive. August natural gas declined by 7.6 cents to close at $3.353 while August crude futures plummeted $2.79 to close at $60.14/bbl.

July 9, 2009