Volatile

Cash natural gas prices on average gained more than 15 cents Thursday, but if volatile and constrained points such as New York and New England are factored out, the overall gain was just over a couple of pennies.

Cash prices overall gained about a dime at most points, but if a handful of New England and highly volatile eastern points are factored in, the national average gain on Monday for Tuesday delivery came in at just under a penny.

Physical gas prices overall averaged a healthy gain of 28 cents Monday, but when volatile East and Northeast points are factored out, the national gain was a more modest 4 cents. Points serving the New York and Boston areas finished the day over $15, but the benchmark Henry Hub was just 2 cents higher at just over $3.40. Futures prices slumped on light volume as medium term weather forecasts moderated. At the close February was down 11.8 cents to $3.351 and March had sunk 11.7 cents to $3.365. February crude oil gained $1.02 to $91.82/bbl.

ExxonMobil Corp., whose international portfolio more often than not has fortified it from the ups and downs of the volatile commodities market, failed to outrun global uncertainty and lower U.S. natural gas prices in the third quarter, with profits off 7% year/year to $9.6 billion, $750 million less than a year ago. Production also declined to its lowest level in three years.

ExxonMobil Corp., whose international portfolio more often than not has fortified it from the ups and downs of the volatile commodities market, failed to outrun global uncertainty and lower U.S. natural gas prices in the third quarter, with profits off 7% year/year to $9.6 billion, $750 million less than a year ago. Production also declined to its lowest level in three years.

The overall cash market outdistanced the volatile futures market and added 7 cents on average Thursday. Particular strength was noted at Midcontinent points as cold temperatures raced into the nation’s midsection. Eastern and Gulf prices were also firm.

Overall physical gas Wednesday was unchanged on average with Rockies points the major winners and volatile Northeast points showing the greatest losses. Midwestern and eastern locations were largely flat. At the close of futures trading the October contract had fallen 1.1 cent to $2.762 and November was 1.6 cent lower at $2.945. October crude oil plunged $3.31 to $91.98/bbl.

Overall, the cash market averaged a 2-cent decline Tuesday, but the Northeast still managed to trade in volatile fashion as traders and marketers continued to adjust to restrictions on Algonquin Pipeline.

Cash prices overall rose an average 8 cents Wednesday as traders had to reconcile volatile trading in the Northeast with a Southern California heat wave. South Texas quotes were also firm. Futures traders are expecting the Energy Information Administration’s (EIA) storage figure Thursday to come in well below historical averages. At the close of futures trading October had added another 7.1 cents to $3.063 and November had gained 8.7 cents to $3.191. October crude oil had fallen 16 cents to $97.01/bbl.