Lows

Forecasts of sub-freezing lows Thursday from the Northeast southward into the Southeast and westward through the Midwest/Midcontinent into the Plains and Rockies resulted in more market strength Wednesday than a day earlier. However, it offered another demonstration of the fact that widespread heating load does not necessarily translate into much higher gas prices.

With near-term weather forecasts being classified as anything but supportive, March natural gas futures on Wednesday continued to explore new lows in the downtrend. However, an afternoon round of buying sparked a rally that allowed the prompt-month contract to close at $4.214, up 1.1 cents from Tuesday’s close.

Even with forecasts of Friday lows in the teens and single digits in the Rockies and northern third of the U.S. and sinking to sub-zero levels in Western Canada and some locations immediately south of the entire Canadian border, prices fell at a large majority of points Thursday. The cash market also felt negative pressure from the previous day’s 13.2-cent decline by January futures.

With Tuesday lows forecast to keep approaching or going below the freezing level in the Northeast and Midwest, spot prices recorded double-digit gains at all points Monday. The return of industrial load from its holiday weekend decline and the previous Thursday’s 4.1-cent increase by April futures also provided small measures of support for the cash market.

Oil and natural gas prices are near record levels and global excess production capacity is near historical lows, which in turn has raised demand for petroleum professionals. But the new workforce is nowhere in sight, according to Raymond James & Associates Inc.

Oil and natural gas prices are near record levels and global excess production capacity is near historical lows, which in turn has raised demand for petroleum professionals. But the new workforce is nowhere in sight, according to Raymond James & Associates Inc.

Although lows around freezing or below would persist into at least Saturday in the Northeast, Midwest, much of the interior West and the eastern end of the South, prices fell by double-digit amounts at all points Friday. A gradual warming trend was under way in many areas, especially in the South where near-springlike temperatures could be expected by early this week.

Prices continued to fall at most points Wednesday in spite of Thursday lows continuing to reach single digits or around zero in upper New England and much of the Midwest. Ongoing substitution of storage use for spot gas purchases, major prior-day screen weakness and looking ahead to weekend warming trends were the chief reasons for the cash market to keep softening in the face of what appears to be substantial fundamental weather demand.

Most of the cash market was moderately softer in post-Christmas trading Wednesday as forecasts of sub-freezing lows had become rather scarce outside the Rockies and some locations in the upper Northeast. Activity was predictably light as some traders remained out of the office on holiday vacations and Boxing Day was being observed in Canada.