Gas for Tuesday physical delivery showed wide variations in price with eastern and western points showing gains, but locations in the country’s mid-section taking declines. Overall the market was 4 cents to $2.34, but double digit gains in New England and the East along with additions of a couple of pennies to Rockies and California points were able to offset declines of a dime or so in the Gulf.
Articles from Gains
September natural gas is set to open a penny lower Tuesday morning at $3.93 as forecasters see near-term warmth as short-lived. Overnight oil markets gained.
Physical natural gas for Tuesday delivery on average rose a dime Monday, with gains widespread and only a handful of points in the loss column. Particularly strong were East and Northeast points, boosted by high next-day power prices and forecasts calling for Tuesday readings as much as 20 degrees above normal.
Stability has come to the Texas oil and gas exploration and production sector, which is a good thing for producers and for consumers, said the economist who compiles the state’s monthly Texas Petro Index (TPI).
Thanks to abundant shale gas supplies and appliance efficiency gains, a homeowner in Connecticut could save $1,800 per year by switching to natural gas heating from fuel oil, according to a trio of utilities in the state that have launched a campaign to get consumers to switch to gas.
Natural gas cash prices on average rose 4 cents in Tuesday’s trading with gains in the Plains, Texas and eastern points leading the march higher. Wild and wacky weather conditions have proved a challenge to cash buyers, who are now devoid of much of their baseload and are at times having to dip into storage and pay penalties. At the close of futures trading, June enjoyed a bump up to $4.025, a gain of 10.0 cents, and July had risen 9.7 cents to $4.068. June crude oil fell 96 cents to $94.21/bbl.
Cash natural gas prices rose 3 cents overall Monday, with gains paced by strong Northeast points undergoing pipeline outages, and higher points in California. Other major market centers were mixed. Futures prices waffled throughout the day, but managed a positive finish, with June ending up 1.5 cents to $3.925 and July adding 1.1 cents to $3.971. June crude oil fell 87 cents to $95.17/bbl.
Cash natural gas prices were unchanged on average in Friday for weekend and Monday trading. Northeast points managed gains as weather forecasts proved supportive, but Rocky Mountain points were steady to lower, and eastern points fell a couple of cents.