Physical

Physical natural gas fell all of a half cent on average Thursday as traders got most deals done prior to the Energy Information Administration (EIA) report on natural gas inventories.

The physical natural gas market on average moved a penny lower Wednesday, as buyers seemed content with mild weather to rely mostly on baseload volumes. Points in and around the Great Lakes were up by a couple of pennies and around the Gulf, prices held within a 2-cent range of unchanged. Rockies points were mostly unchanged as well. Futures gained on light volume as players positioned themselves ahead of Thursday’s Energy Information Administration (EIA) storage report. At the close of trading, June futures had risen 5.8 cents to $3.978 and July closed 5.6 cents higher at $4.030. June crude oil gained $1.00 to $96.62/bbl.

Physical gas prices overall were flat Wednesday with most price averages fluctuating within a couple of pennies. Even the typically volatile Northeast traded within 1-2 cents of Tuesday’s prices.

Physical gas prices overall averaged four cents higher Monday with most points reporting nominal temperature-driven gains. Eastern points averaged gains of about a nickel, and Midwest locations gained close to a nickel as well, as chilly and stormy conditions were expected to prevail nearterm.

Physical natural gas prices on average for weekend and Monday delivery added a couple of pennies Friday as gains throughout a majority of the country overcame some losses in the Midwest, Great Lakes and Northeast. Seesawing weather conditions were expected to result in Monday temperatures slightly to much above normal in the Midwest.

Physical natural gas prices fell an average 3 cents overall in Monday’s trading, but that hid a much broader and deeper market decline. If multi-dollar advances on volatile Northeast pipelines are factored out, the market decline was just shy of 16 cents. Offsetting the Northeast strength were stout losses at California and Rocky Mountain points. After a weak open, May natural gas futures trimmed losses to nine-tenths of a cent to $4.015 and June eased five-tenths of a cent to $4.061. May crude oil fell 16 cents to $97.07/bbl.

Physical natural gas cash prices fell 3 cents on average Wednesday, but that included some hefty drops at northeastern points, as weather-related demand plummeted. If those are taken out of the mix, the overall market actually added a couple of pennies on average. Gulf points were particularly strong, and New England was particularly weak. Spot futures managed to settle well above $4 and posted an 18-month high. At settlement May was $4.068, up 7.7 cents and June added 7.7 cents as well to $4.108. May crude oil gained 24 cents to $96.58/bbl.

The physical market overall was unchanged Thursday, but that was due in large part to multi-dollar losses at constrained northeast pipelines such as Algonquin, Iroquois and portions of Tennessee. Omitting those losses from the equation results in a 6-cent market gain.

Physical gas prices were mostly down Tuesday except for in the Northeast, where traders dug in and bought necessary volumes to see them through late-season cold and a series of storms.