U.S. natural gas forward prices continued on the wild ride they’ve been on the last few weeks, posting steep losses — one week after putting up equally sharp gains — as weather models that had called for scorching temperatures throughout most of July had begun to cool.
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February natural gas was set to open Thursday about 7 cents higher at around $2.982 as the market looked ahead to a potentially record-setting Energy Information Administration (EIA) storage report.
The expiring January natural gas contract was set to open about 5 cents higher Wednesday at around $2.697 amid only small changes to forecasts calling for below-normal temperatures across much of the country the next 10 days and warming after that.
January natural gas was set to open about 4 cents higher Friday at around $2.640, with the anticipated arrival of frigid temperatures offering traders something to ponder heading into the holiday weekend.
Physical natural gas continued its trek higher Wednesday as temperature forecasts called for above-normal levels. Gains of about a nickel to a dime were widespread, with strength noted in Louisiana, Texas, the Midcontinent and Midwest. The NGI National Spot Gas Average added a stout 4 cents to $2.69.
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.
August natural gas is expected to open 3 cents lower Monday morning at $2.94 as overnight weather models lower temperature forecasts to seasonal levels. Oil markets were narrowly mixed.
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.
February natural gas is set to open 3 cents lower Monday morning at $3.17 as weather forecasts can only hint at a return of seasonal cold to eastern energy markets. Overnight oil markets slumped.
For the third week in a row, natural gas forwards markets surged by double-digits as much of the U.S. was experiencing bitterly frigid temperatures. And talk of a Polar Vortex in the upcoming week had the market shivering in its snowboots, according to NGI’s Forward Look.