Price

August natural gas is set to open 5 cents higher Tuesday morning at $2.98 as weather models slide forecast heat in a more easterly direction and storage surplus contraction is back in play. Overnight oil markets fell.

FERC should do more to address the perceived regulatory risk of reporting to price indexes, panelists at a technical conference on natural gas index liquidity and transparency told Commission staff last week.

July natural gas is called 2 cents higher Friday morning at $2.91 as near-term weather forecasts call for basically normal temperatures, and near-term traders mull bearish conditions for next week. Overnight oil markets inched higher.

June natural gas is set to open 4 cents lower Tuesday morning at $3.31 as weather forecasts offer little in the way of price guidance, yet traders see the ongoing price advance intact for the moment. Overnight oil markets rose.

The number and volume of natural gas transactions — according to FERC Form 552 submissions from up to 680 respondents — were in decline during 2008 to 2014 and flattened in 2015. However, that trend has improved somewhat in 2016, executives with two price reporting agencies (PRA) said in Houston on Tuesday.

May natural gas is set to open 4 cents lower Friday morning at $3.29 as traders question just how much more upside the market has left in it given currently ample storage. Overnight oil markets rose.

The number and volume of natural gas transactions — according to FERC Form 552 submissions from up to 680 respondents — were in decline during 2008 to 2014 and flattened in 2015. However, that trend has improved somewhat in 2016, executives with two price reporting agencies (PRA) said in Houston on Tuesday.

FERC has approved index price changes in their respective tariffs proposed by multiple pipelines owned/operated by Kinder Morgan Inc. (KMI) to reference index prices published by Natural Gas Intelligence (NGI) instead of those published by Intercontinental Exchange as the latter will soon cease to exist as an independent publisher of natural gas price indexes. The pipelines affected are Cheyenne Plains Gas Pipeline Co LLC [RP17-508]; Sierrita Gas Pipeline LLC [RP17-509]; Ruby Pipeline LLC [RP17-512]; El Paso Natural Gas Co. LLC [RP17-504]; Wyoming Interstate Co. LLC [RP17-505]; and Colorado Interstate Gas Co. LLC [RP17-486]. Also making similar changes in index pricing to NGIare KMI’s Young Gas Storage Co. Ltd. [RP17-484] and Keystone Gas Storage LLC [PR17-30]. NGI, which has been publishing wholesale natural gas prices for more than 30 years, is an approved price reporting agency in compliance with the Federal Energy Regulatory Commission’s 2003 policy statement [PL03-3] on wholesale natural gas and electricity price indexes.

Wells Fargo Securities LLC has raised its natural gas price forecast for 2017, citing increased exports to Mexico and overseas, as well as improving demand, which should outpace “moderate” supply gains.