The expiring September natural gas contract is set to open 2 cents lower Monday morning at $2.85 as traders largely discount an array of weather factors in play. Overnight oil markets slumped.
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After more than two months of relative calm, the 2016 Atlantic hurricane season has become significantly more active, prompting operators in the Gulf of Mexico (GOM) to shut in more than 11% of oil and more than 5% of natural gas, but — for the moment, at least — the chances of any significant disruption seem to have lessened.
September natural gas is set to open 5 cents lower Friday morning at $2.80 before Monday’s contract expiration as traders see weather conditions fully priced into the market and note a technically overbought condition. Overnight oil markets fell.
London-based supermajor BP plc on Friday was taking precautions in the Gulf of Mexico (GOM) as a tropical disturbance with the potential to grow into a larger storm rolled out of the Atlantic Ocean near Cuba.
For the week ended Aug. 26 there was only nominal movement in weekly gas prices, but the roles were reversed from the previous week. Solid gains of a dime or more were posted at interior basins and Midwest market points, but declines in the Northeast and California pulled the averages down.
September natural gas is set to open 3 cents higher Tuesday morning at $2.71 as weather forecasts again turned warmer and the tropical Atlantic added another storm. Overnight oil markets fell.
Physical natural gas for Wednesday moved little in trading Tuesday, with some producing basins reporting no movement at all and most points moving within a few pennies of unchanged.
September natural gas is set to open 5 cents lower Monday morning at $2.75 as weather forecasts turn cooler and a tropical event surfaces in the Atlantic. Overnight oil markets fell.
Natural gas came back from the weekend with a vengeance as double-digit gains were the norm for both the physical and futures markets thanks to a tropical weather system developing in the Gulf of Mexico.
Despite the formation of Tropical Storm Ana earlier this month — several weeks before the official start of the 2015 Atlantic hurricane season — the number of tropical cyclones this year is expected to be below normal, according to AccuWeather forecasters.