Price

A potential deal on Thursday to end the oil price war between Russia and the Organization of the Petroleum Exporting Countries is likely not enough to stanch the fallout from Covid-19 in North America’s oil and natural gas industry, with one Lower 48 pioneer said to be on the cusp of declaring bankruptcy.

Strong growth in domestic natural gas production is expected to draw down prices through next year, with Henry Hub spot averaging $2.79/MMBtu in 2019 and $2.78 in 2020, according to the Energy Information Administration (EIA).

Growing natural gas exports and domestic gas consumption will help push Henry Hub prices to an average $3.13/MMBtu this month and $3.12/MMBtu in 2018, according to the Energy Information Administration (EIA).

December natural gas is expected to open 4 cents higher Thursday morning at $2.93 as weather models suggest a pattern leading to additional cold. Overnight oil markets were mixed.

November natural gas is set to open 3 cents higher Friday morning at $2.90 as weather forecasts also call for cooling in the Midwest, although the East continues warm. Overnight oil markets were mixed.

October natural gas is expected to open 2 cents higher Friday morning at $2.95 as weather models show warmth extending out into October and traders mull a long position. Overnight oil markets were mixed.

Mexico marketers sold natural gas at an average of price $4.10/MMBtu in July, the first month since the country implemented its capacity reservation regime.

September natural gas is set to open a penny higher Tuesday morning at $2.81 as traders see little significant change in temperature forecasts and technicians see the bearish luster fading. Overnight oil markets eased.

September natural gas is set to open a penny higher Tuesday morning at $2.80 as traders see only minimal changes to the temperature forecasts and mull an ongoing storage surplus contraction. Overnight oil markets retreated.