Seasonal

Despite signals that the $3.610 prompt-month low from Aug. 27 would likely hold up as the seasonal low in natural gas futures, the November contract penetrated the price level early Friday morning, opening the door to even lower prices.

The latest seasonal outlook from the Natural Gas Supply Association (NGSA) predicts that the wholesale gas market will be similar to that of last year. The effect on prices of demand increases driven by an improving economy is likely to be offset by growing supply, the trade group said.

The latest seasonal outlook from the Natural Gas Supply Association (NGSA) predicts that the wholesale gas market will be similar to that of last year. The effect on prices of demand increases driven by an improving economy is likely to be offset by growing supply, the trade group said.

Low seasonal gas demand combined with limited available storage capacity will pressure cash prices, pushing the November natural gas futures contract lower, asserted a Credit Suisse analyst in a research note last Friday, arguing against a decoupling of the prompt-month contract from cash.

Low seasonal gas demand combined with limited available storage capacity will pressure cash prices, pushing the November natural gas futures contract lower, asserted a Credit Suisse analyst in a research note Friday, arguing against a decoupling of the prompt-month contract from cash.

Seasonal refueling at the nation’s nuclear power plants will help the natural gas industry next month, while a capacity utilization plateau that the nuclear industry appears to be approaching could spell out a bullish future for natural gas, energy analysts with Raymond James & Associates Inc. said last week.

Seasonal refueling at the nation’s nuclear power plants will help the natural gas industry next month, while a capacity utilization plateau that the nuclear industry appears to be approaching could spell out a bullish future for natural gas, energy analysts with Raymond James & Associates Inc. said Monday.

Though forecasts of seasonal springtime temperatures remain the norm for most areas, the cash market was able to find enough traction in weather-based demand to rise at all points Wednesday. It also derived support from the run-up of 6.8 cents in Tuesday’s expiration-day trading of May futures.

With warming trends due to be under way Wednesday in some key market areas and seasonal to above-normal temperatures dominating the overall weather outlook, prices fell at nearly all points Tuesday. As on the day before, changes were generally small with few exceeding a dime except in the Northeast, where citygates tended to soften by amounts roughly similar to those by which they had risen on Monday.