Natural gas futures dipped into the red early Tuesday and remained there on demand concerns tied to mixed weather forecasts and diminished natural gas exports. The July Nymex contract settled at $1.767/MMBtu, down 2.2 cents day/day. August was down 2.9 cents to $1.863.
Articles from Midwest
As processing capacity has come online in 2019, natural gas production from the Bakken Shale has been booming, and Western Canada producers stand to lose out as they compete with more molecules seeking markets in the Midwest.
Western Canadian natural gas will continue to face stiff competition from unconventional American production, according to the operator of the supply collection grid in Alberta and British Columbia (BC).
September natural gas pipeline flows into the Midwest have outpaced regional demand from residential, commercial, industrial and power generation combined, according to a Direct Energy executive.
January natural gas was set to open about 4 cents higher at around $2.815 Monday, as forecasters were pointing to some potential cold risks in the long-range weather outlook.
After seeing production declines in recent years, the Rockies region often goes overlooked in the North American natural gas supply landscape, overshadowed by the impressive growth in the Marcellus and Utica shales, and the promise of new associated gas output from oil-directed drilling on the Gulf Coast and Midcontinent.
November natural gas is set to open 5 cents higher Wednesday morning at $2.94 as forecasters expect a round of warm, moist weather to hit important Mid-Atlantic markets. Overnight oil markets eased.
October natural gas is set to open 2 cents higher Monday morning at $2.98 as overnight weather forecasts turned warmer for the Midwest. Overnight oil markets rose.
August natural gas is set to open 5 cents higher Tuesday morning at $2.98 as weather models slide forecast heat in a more easterly direction and storage surplus contraction is back in play. Overnight oil markets fell.
The expiring July natural gas is expected to open 3 cents higher Wednesday morning at $3.06 as traders hone in on new weather data reinforcing warmer trends. Overnight oil markets weakened.