futures

Steep Natural Gas Price Losses Leave Forwards ‘Significantly Undervalued’

Steep Natural Gas Price Losses Leave Forwards ‘Significantly Undervalued’

Massive declines spread across natural gas forward markets for the trading period ending Wednesday, fueled primarily by a return to the warm weather pattern that has characterized most of the winter season.  A quick ramp in production following last week’s historic winter storm also served as a headwind for prices, with March averaging 34.0 cents…

February 26, 2021
With Worst of Energy Crisis Likely in Rear-View Mirror, Natural Gas Futures, Cash Prices Plummet

With Worst of Energy Crisis Likely in Rear-View Mirror, Natural Gas Futures, Cash Prices Plummet

Despite the lack of clarity on the long-term impacts from this week’s Arctic storm, news that power had been restored to most Texas residents on Thursday and warmer weather seen moving into the Lower 48 by next week sent natural gas futures prices crumbling.  A huge bearish miss in the latest government storage data sealed…

February 18, 2021
ICE to Launch LNG Freight Futures Contracts in Another Effort to Manage Increasing Market Volatility

ICE to Launch LNG Freight Futures Contracts in Another Effort to Manage Increasing Market Volatility

Intercontinental Exchange Inc. (ICE) said Wednesday it plans to launch two liquefied natural gas (LNG) freight futures contracts next month, giving traders, vessel charterers and other market participants another tool to manage increasingly volatile shipping costs in the space. ICE said the contracts would be based on LNG freight spot price assessments by Spark Commodities,…

February 10, 2021
Bitter Cold, Strong Export Demand Drive Big Gains for Natural Gas Forwards

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…

January 29, 2021
February Natural Gas Futures Fail to Finish Strong in Volatile Trading Day

February Natural Gas Futures Fail to Finish Strong in Volatile Trading Day

In an erratic day of trading that saw natural gas futures swing between gains and losses several times, the prompt month eventually finished in the red despite the potential for a surge in freezing temperatures and robust heating demand in late January. Lower production, rising U.S. liquefied natural gas (LNG) volumes and expectations for a…

January 13, 2021
Natural Gas Forwards Rally Sharply on Sustained LNG Demand, but Market Waiting for More Cold

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…

January 8, 2021
CME to Launch Asian LNG Futures Contracts Aimed at Japanese Power Producers

CME to Launch Asian LNG Futures Contracts Aimed at Japanese Power Producers

CME Group said late Wednesday it plans to launch two Asian liquefied natural gas (LNG) futures contracts and four Japanese electricity futures contracts in February. While the electricity contracts would expand CME’s suite of global power futures and options, the two LNG contracts could provide Japanese power producers another tool to manage price risk, the…

January 7, 2021
Natural Gas Forward Price Action Mostly Peaceful as Traders Dash Away for Christmas Break

Natural Gas Forward Price Action Mostly Peaceful as Traders Dash Away for Christmas Break

After large swings the past three weeks, natural gas forward prices took a breather as moderate weather settled over the United States in between bouts of colder temperatures. January prices fell only 4.0 cents on average from Dec. 17-23, as did the balance of winter (January-March), according to NGI’s Forward Look. The rest of the…

December 24, 2020
Market Slow to Embrace CME’s U.S. LNG Futures Contract One Year After Launch

Market Slow to Embrace CME’s U.S. LNG Futures Contract One Year After Launch

Roughly a year after CME Group launched its U.S. liquefied natural gas (LNG) futures contract, the first ever available in the world for physical LNG delivery, it has yet to trade as the spot market continues to evolve and global players have long been slow to adopt new financial tools in their deals.  Developing a…

November 17, 2020
Natural Gas Futures Climb Early Amid Strength in LNG as Another Storm Expected to Enter GOM

Natural Gas Futures Climb Early Amid Strength in LNG as Another Storm Expected to Enter GOM

Estimates showing strengthening liquefied natural gas (LNG) demand boosted gas futures in early trading Monday, while yet another named storm could threaten production and exports later this week. The November Nymex contract was up 8.8 cents to $2.526/MMBtu at around 8:45 a.m. ET. Data as of early Monday showed feed gas flows to U.S. LNG…

October 5, 2020
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