Range

Trading within a range from $6.370 to $6.640 on Tuesday, November natural gas futures went on to settle slightly higher than Monday’s session, drawing further attention to concerns about the futures’ premium to the cash market, especially as major eastern markets prepare for the season’s first real burst of colder temperatures later this week. The contract ended up settling 3.7 cents higher Tuesday at $6.466.

October natural gas futures traded within a fairly tight 17-cent range Tuesday as the expiring prompt month continued to feel out two-year-old support around the $4.500 level. One day ahead of going off of the board, the contract put in a low of $4.380 before closing at $4.526, up 5.1 cents on the day.

If FERC allows the return on equity (ROE) for natural gas pipelines to dip into the single-digit range, a new report issued by the Interstate Natural Gas Association of America (INGAA) last week warned that it would likely have a “chilling effect” on investment in new pipeline infrastructure.

If FERC should allow return on equity (ROE) for natural gas pipelines to fall into the single-digit range, a new report by the Interstate Natural Gas Association of America (INGAA) warned that it would likely have a “chilling effect” on investment in new pipeline infrastructure.

July natural gas was mostly quiet Wednesday as traders pushed the contract back and forth between the day’s $6.500 to $6.680 range. After reaching the day’s high late in the session on a little short-covering, the prompt month ended up settling at $6.588, up 8.6 cents on the day.

Trading within a slim 16-cent range on the day, July natural gas on Tuesday managed only a high of $6.45 as the contract built upon Monday’s losses. After reaching a low of $6.290 just before noon EDT, the prompt month limped in to close at $6.385, down 7.8 cents on the day, bringing the week’s loss-to-date to 23.8 cents.

Trading within a 20-cent range on the day, June natural gas futures on Friday seemed content to bounce between $5.880 and $6.080 before closing below $6.000 for the second consecutive session at $5.962, down 3.5 cents on the day and 31.8 cents lower than the previous week’s close.

While mirroring Friday’s slim trading range, April natural gas futures traded at a significantly lower level on Monday. After trading down in Sunday’s Access session, April natural gas opened on Monday at $6.610, put in a high of $6.620 soon after, and set its sights lower for the remainder of the day. The prompt-month contract pushed as low as $6.470 before rebounding later in the afternoon to settle at $6.547, down 24.3 cents from Friday.

Traders appeared to take Friday off for the most part as April natural gas futures managed a slim 22-cent range with no significant pushes in either direction, lending credibility to the theory that the market is comfortable just where it is right now. Prompt-month natural gas ended up settling at $6.790, up 3 cents from Thursday but 52.3 cents lower than the previous Friday’s close.