Physical

Shale natural gas produced in the Northeast will supply more than 80% of the physical gas going to New York City by 2025, according to ICF International.

Physical natural gas prices for weekend and Monday delivery overall fell on average 4 cents as traders expressed a reluctance to commit to a three-day purchase when other alternatives were available. Northeast and California points were especially hard hit. Futures prices took a dive as traders factored in little potential market disruption from Tropical Storm Isaac. September tumbled 10.0 cents to $2.702 and October shed 10.5 cents to $2.734. October crude oil skidded 12 cents to $96.15/bbl.

Physical gas overall Thursday finished fractionally lower with eastern points higher and California locations softer. The Energy Information Administration (EIA) reported an inventory increase of 47 Bcf, much higher than the market was anticipating, and futures prices initially plunged before erasing most of an 11-cent deficit by closing.

The physical market overall gained on average less than a penny Wednesday with most points vacillating within a penny of unchanged. California locations did exhibit gains, however. Futures managed to advance as traders warily kept their eyes on a looming tropical storm now in the eastern Caribbean, and the ultimate trajectory won’t be known until the storm makes a critical turn to the north. At the close of futures trading September had risen 5.1 cents to $2.826 and October had added 5.4 cents to $2.863. October crude oil continued its march higher posting a gain of 42 cents to $97.26/bbl.

Rebounding from a weak finish to the previous week, a majority of physical natural gas points around the country on Monday moved higher from a nickel to nearly 15 cents. The cash market might be able to keep the upward momentum rolling for another day if traders are swayed by the futures action Monday, which saw September gas climb 5.7 cents to close the regular session at $2.776.

Physical natural gas prices spiraled lower Friday for Weekend and Monday delivery as the calendar officially ticked over into the second part of August, meaning summer heat is officially on its goodbye tour. Quite a few points dropped by at least dime, led by the Northeast, which saw averages sink from a dime to nearly 70 cents.

Natural gas cash values declined nearly across the board as physical gas traders used the screen’s prior-day drop for inspiration. Most points declined by a nickel or less and traders and analysts alike are having trouble pointing to any sort of rebound in the immediate future. Even what appeared to be a bullish storage injection report Thursday wasn’t what it seemed according to one NGI source. September futures traveled an up and down course on Thursday but ultimately closed the day’s regular session at $2.724, down 2.4 cents from Wednesday’s close.

Physical and futures markets both fell about 4 cents Monday as weather forecasts called for cooler temperatures across major energy markets. Some Northeast points shot higher, while California locations fell moderately in spite of forecasts for greater power generation requirements. At the close of futures trading September had given up 4.1 cents to $2.729 and October had retreated 4.0 cents to $2.768. September crude oil fell 14 cents to $92.73/bbl.

The physical market was mostly flat Monday as some higher quotes surfaced in the constricted Northeast and also California and the Rockies, but eastern and Midwest points were steady to slightly lower. At the close of futures trading September had added 3.1 cents to $2.908 and October had gained 3.5 cents to $2.918. September crude oil rose 80 cents to $92.20/bbl.