Natural gas prices were a mixed bag on Tuesday with mild weather and tumbling prices in the Northeast offset by nominal gains in other most other regions as traders grappled with the combination of stronger futures prices and a winter storm lashing the Great Plains.
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Lack of Upside Momentum Prompts Selling; September Weakens
Traders noted that the decline Wednesday in natural gas futures fit into an overall trading pattern of tumbling energies with crude oil falling nearly $2/bbl., gasoline diving more than 10 cents/gallon and heating oil shedding more than 7 cents/gallon. At the close September futures had skidded 6.5 cents to $4.090 and October was down 5.4 cents to $4.102. September crude oil swan-dived $1.86 to $91.93/bbl.
Futures Reverse Course After Morning Spike to Settle Pennies Lower
The bull move in natural gas futures looked to be alive and well in Friday morning trading before the prompt-month contract came tumbling back to earth in the afternoon. After reaching a high of $8.410 in early activity, the February contract plummeted to a low of $8.095 just after noon EST before closing out the day at $8.210, down 4.9 cents from Thursday but 36.9 cents higher than the previous week’s finish.
Bulls Raise Their Horns Despite 14-Cent Decline Wednesday
After tumbling lower for the first three hours of trading, the natural gas futures market rebounded Wednesday as bears failed to press the market down to near-term technical support. The June contract finished the session at $6.606, down 14 cents on the day but above its $6.540 low for the session.
Near-Month Gas Futures Ignore Late Season Cold, Slip Another 21.8 Cents
Tumbling oil prices and the 60% gas storage surplus compared to the five-year average continued to pressure gas futures prices lower Monday as traders overlooked current snowy weather, below normal temperatures and forecasts of an active hurricane season.
Pioneer’s Sheffield: Majors in U.S. Gas Production ‘Free-Fall’
Major producers are in a “free-fall” when it comes to U.S. natural gas, with production tumbling by about 400 MMcf/d or 4.4 Bcf each quarter, said the head of Dallas-based Pioneer Natural Resources.
Pioneer’s Sheffield: Majors in U.S. Gas Production ‘Free-Fall’
Major producers are in a “free-fall” when it comes to U.S. natural gas, with production tumbling by about 400 MMcf/d or 4.4 Bcf each quarter, said the head of Dallas-based Pioneer Natural Resources.
Futures Drop 6% Despite Supportive Storage Data
After tumbling beneath key support, the natural gas futures market broke to new two month lows late Thursday morning as traders chose to ignore a seemingly bullish gas storage report (featuring a 236 Bcf withdrawal). However, prices rebounded in the afternoon, suggesting a short-term bottom may be in place. The May contract finished at $5.40, down 25.4 cents for the session, but up an impressive 15 cents above its earlier low.
Screen Dive Expected to Keep Cash Quotes Tumbling
Winter made its official debut Sunday, but outside of the Rockies and Upper Plains there was little evidence of the season Monday. Forecasts of continuing relatively mild weather through the weekend helped accelerate the price declines that had begun Friday. Monday’s losses were generally in the range of 35-85 cents, with most exceeding half a dollar.
Tumbling Cash Has Catching Up to Do As Futures Rocket 76.7 Cents Higher
While Nymex screamed out of control Monday, with the January contract moving 76.7 cents higher to $6.930, the cash market largely sat back and watched in shock. Most cash points ended the day down about 20 cents in delayed response to Friday’s futures slide and the short-term forecasts in the Northeast for a little bit milder weather by Wednesday. Cash trading on Tuesday, however, almost certainly will be a different story.