Finding only modest heating load outside the West, and pressured by the screen’s drop of slightly more than 60 cents the day before, swing prices for the weekend plunged Friday. Losses ranged from about C25 cents for intra-Alberta gas to a little more than 90 cents at the Algonquin citygate; nearly all were half a dollar or more.
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Central and eastern Gulf producers fled the wrath of Tropical Storm Bonnie on Wednesday last week but many quickly remanned platforms Thursday and Friday and resumed production, which on top of cool weather, heavy rains and high storage levels sent cash and futures prices cascading back down from their briefly held peaks.
In a new report, titled “WECC Electricity & Fuel Price Outlook,” Sacramento, CA-based consulting firm Henwood Energy acknowledged having to raise its natural gas price forecast by 50 cents/MMBtu but said it still expects gas prices to come down from their current lofty levels in the long term to about $3.50-4.00.
Pressured by weakness in the Sunday night Access trading session, the natural gas futures market turned lower Monday in sympathy with losses in the crude oil market and amid bearish short-term technical factors. However, chilly temperatures and stronger Northeast cash prices was enough to slow the downside momentum, leaving the April market with a modest 3.6-cent decline and $5.546 close.
Pressured by forecasts calling for temperatures to crest the 50-degree mark in the Northeast this weekend, natural gas futures continued lower Tuesday as bulls appeared increasingly content to ignore the expiring March contract in favor of the spring and summer months.
Pressured by the prospect of warmer temperatures over the next couple weeks, the natural gas futures market Wednesday morning slipped to lows not seen since early December. However, after dropping down to fill in a key gap on the daily chart, the March contract gained back some of the ground it had lost. At $5.26, the prompt month was 14.4 cents lower for the session, but a dime above its early bottom. At 73,225, volume in the gas pit was moderate to heavy.
Pressured by forecasts calling for mild temperatures for the remainder of the year, natural gas futures tumbled precipitously Monday in light, holiday week trading. The January contract, which is set to expire next Monday, experienced the worst of the selling as it dropped 9.4% or 65.8 cents to close at $6.324. At 64,257, estimated volume was light for the session considering the size of the price movement.
Pressured by the bearish agreement of mild current temperatures and unseasonably warm weather forecasts, the natural gas futures market tumbled lower in waves of selling during both Sunday night’s Access trading and Monday’s regular open-outcry session.
Pressured by forecasts for mild weather across much of the country, the natural gas futures market tumbled lower Monday as traders completely rescinded Friday’s gains.
Pressured by the combination of mild weather forecasts and bearish storage news expected Thursday, the natural gas futures market continued its downward spiral Tuesday by recording another gap-lower open and a new five-week low.