Outlook

Prices for natural gas failed to strengthen throughout most of 2015, but the production decline registered year/year in November offers a sign, albeit small, that capacity may be shrinking as the year draws to an end.

The U.S. distressed debt ratio reached a peak for the year at 24.5% in December — its highest since the 2009 recession — and the oil and gas sector accounted for about 30% of the debt issuers, according to a report by Standard & Poor’s Ratings Services (S&P).

December natural gas is expected to open unchanged Wednesday morning at $2.32 as traders continue to digest an unsupportive weather outlook along with deteriorating technicals. Overnight oil markets eased.

Physical natural gas for Thursday delivery shed a couple of cents across the country with the exception of the Rockies and in California, where most points managed to stay in the black. TheNGI National Spot Gas Average declined a penny to $1.99.

January natural gas is expected to open a penny lower Wednesday morning at $3.64 as traders balance somewhat more bullish fundamental data with a weak technical picture and an unsupportive weather outlook. Overnight oil markets weakened.

January natural gas is expected to open 14 cents lower Monday morning at $3.66 as traders see no evidence that the much above normal temperature outlook will not continue through December. Overnight oil markets plunged.

November natural gas is expected to open 12 cents lower Monday morning at $3.92 as forecasts calling for a cool air incursion suddenly look less intense. Overnight oil markets rose.

The Pacific Northwest's 10-year natural gas outlook calls for abundant supply options and a modest 1.5% increase in demand this year, according to the latest assessment by the Northwest Gas Association (NWGA).

Government agency said it also expects Americans to spend more this winter to heat their homes with natural gas.