Market

After selling off throughout last week, natural gas futures bounced back Monday as weather models advertised colder temperatures arriving in late October. Although uncertainty remained over how long the chilly temperatures will stick around, the November Nymex gas futures contract jumped 6.6 cents to settle at $2.280/MMBtu. December climbed 4.1 cents to $2.498.

With a growing disparity between weather models and strong daily production data, natural gas traders pushed Nymex futures down another nickel on Wednesday. With traders expecting another loose storage stat in the latest government data due out on Thursday, the November contract settled 5.4 cents lower at $2.234/MMBtu. December slipped 5.5 cents to $2.436.

After 12 straight days of losses, natural gas futures bounced back early Thursday as weather models shifted a bit colder for mid-October. With eyes on another 100 Bcf-plus storage injection later this morning, the Nymex November gas futures contract was trading 2.2 cents higher at $2.269 just before 8:30 a.m. ET.

Forecasts showing weak weather-related demand by the second week of October, along with indications of further production growth, saw natural gas futures follow through to the downside Monday. After selling off late last week, the November Nymex contract fell another 7.4 cents to settle at $2.330/MMBtu. December settled at $2.504, off 6.1 cents.

After rallying to start the week, natural gas futures prices gave up ground for a second consecutive session Wednesday as the market looked ahead to what was expected to be a near-average weekly inventory report. The October Nymex futures contract settled 3.1 cents lower at $2.637/MMBtu after trading as high as $2.696 and as low as $2.603. November settled at $2.665, down 3.5 cents.

Liquefied natural gas (LNG) buyers could start rejecting U.S. cargoes next year as the global gas market is all but certainly to remain oversupplied even if this coming winter is colder than normal, a team of Poten & Partners analysts said Monday.

As traders factored in warmer forecast changes against a backdrop of broader energy market volatility following a major attack in Saudi Arabia over the weekend, natural gas futures climbed several cents Monday. The October Nymex contract settled 6.7 cents higher at $2.681/MMBtu, while November climbed 7.2 cents to $2.725.

Warmer forecast trends over the weekend added fuel to the recent short-covering rally Monday as natural gas futures extended their run higher. The October Nymex futures contract surged 8.9 cents to settle at $2.585/MMBtu, while November picked up 7.4 cents to settle at $2.625.

Natural gas futures rallied decisively for a second straight session Wednesday, putting bears on the run as the market begins to look ahead to winter. After picking up more than 7 cents a day earlier, the October Nymex futures contract surged another 8.7 cents to settle at $2.445/MMBtu. November added 9.5 cents to settle at $2.492.