Natural gas forward prices posted modest increases across the majority of U.S. markets for the trading week ending March 24, buoyed largely by record export demand, according to NGI’s Forward Look. With the spring shoulder season underway, gas bulls have struggled to gain momentum in recent weeks. Aside from stormy weather patterns that could drive…
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ICE Reports First LNG Freight Futures Trades — LNG Recap
Intercontinental Exchange Inc. said Tuesday its liquefied natural gas (LNG) freight futures contracts launched Monday and were traded by leading industry players on their first day. The contracts are based on LNG freight spot price assessments by Spark Commodities. ICE said 15 lots of the Spark30S Atlantic and 15 lots of the Spark25S Pacific contracts…
Luck of the Irish Eludes April Natural Gas Futures
Natural gas futures dropped back into the red on Wednesday as traders mulled forecasts for mild spring weather and its dampening effect on demand along with polls that showed expectations for only a modest storage withdrawal. The April Nymex contract declined 3.4 cents day/day and settled at $2.528/MMBtu. May fell 4.2 cents to $2.555. The…
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…
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…
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,…
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…
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…
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…
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…