Physical natural gas prices on Friday played catch-up with Thursday’s futures collapse, and weekend and Monday gas at all but a handful of points scored double-digit losses averaging 16 cents.
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Natural gas cash prices overall for weekend and Monday delivery played catch-up with Thursday’s screen decline and dropped on average approximately 16 cents nationally. Volatile Northeast and eastern locations led the slide and double-digit declines were common.
Persistent drought in recent years is said to have played a role, but exploration and production (E&P) activity is being cited as another reason water prices in Northern Colorado have skyrocketed in the past three years. However, state water officials caution that the numbers can be overstated.
Physical gas prices for weekend and Monday delivery overall fell 12 cents Friday as cash market traders played catch-up with Thursday’s 14-cent futures losses.
Spots cash prices played catch-up with the screen in Friday’s trading. The average overall loss was 34 cents, and all actively traded points endured declines in the 30-cent area. Traders see the highs for the year in place and see mounting fundamental pressure on prices in the spring and summer. At the close of futures trading, June had risen 1.6 cents to $4.041 and July also had gained 1.6 cents to $4.093. June crude oil, aided by a supportive employment report, gained $1.62 to $95.61/bbl.
The cash market Friday played catch-up to the 18-cent screen advances seen Thursday and added 16 cents on average for weekend and Monday gas. All points posted gains. Moderate Friday temperatures in the East and Northeast were forecast to give way to cooler readings and New England and East points led the charge higher. May was able to hold on to Thursday’s meteoric advance and added 0.7 cent to $4.408 and June gained 0.5 cent to $4.437. May crude oil gained 28 cents to $88.01/bbl.
It was only a matter of time before Democrats called for a hearing to explore what role, if any, extreme weather events and climate change played in the Frankenstorm that slammed into the northeastern coast this week when Hurricane Sandy teamed with a cold front from the West to create a superstorm.
Overall cash points fell on average by 10 cents Tuesday as the physical market played catch-up to Monday’s 16-cent drubbing of the spot futures. Eastern and Midwest points were particularly hard hit as mild temperatures also worked to limit loads. At the close of futures trading November had gained 8.3 cents to $3.535 and December had added 9.3 cents to $3.861. December crude oil continued its free-fall by losing $1.98 to $86.67/bbl.
Cash prices played catch-up with exuberant futures Friday as the market digested news of additional production and drilling cutbacks. Cash averages recorded double-digit gains at nearly every point across the country.
Mild winter temperatures, which have played a part in holding down natural gas prices, dominated much of the country last month, making it the fourth-warmest January on record for the contiguous United States, according to AccuWeather.com.