Weakness

The physical natural gas cash market fell on average by 2 cents Wednesday as traders noted continuing weather-derived weakness at Northeast points. The Midwest was mixed and Gulf points eased a couple of pennies. The spot July contract was finally able to breach the $4.00 barrier and settled 0.3 cent higher at $4.001. August finished unchanged at $4.015, and July crude oil added 43 cents to $93.74/bbl.

Cash prices eased 4 cents overall Tuesday with pronounced weakness seen at Northeast points as well as the Midcontinent. Gulf points were mostly steady. At the close of uninspired futures trading, July had added 0.7 cent to $3.998 and August had managed to rise by 0.6 cent to $4.015. July crude oil slipped 14 cents to $93.31/bbl.

Physical gas prices slipped 3 cents overall on average with some strength working its way into the market, but not enough to counteract Northeast weakness.

Cash market prices fell just over a nickel on average Wednesday as weakness at Northeast points led a broad retreat. Natural gas futures were even softer. At the close January futures had fallen 9.8 cents to $3.320 and February sank 8.9 cents to $3.366. January crude oil added $1.58 to $89.51/bbl.

The cash market on average fell around a nickel Tuesday with pervasive weakness seen in all sections of the country. The Midwest was weak, but isolated gains were noted at Northeast points. East and Rockies locations fell. At the close of futures trading, December had risen 11.3 cents to $3.832 and January had gained 10.7 cents to $3.944. January crude oil tumbled $2.53 to $86.75/bbl on hints of a break in Middle East fighting.

Overall cash prices added about a nickel on average Wednesday as strength at eastern and other points was able to offset weakness in the Northeast and a steady Midcontinent market. Meanwhile, December futures recorded a 12-month spot contract high on the day at $3.827 before closing out the regular session at $3.760, up 2.1 cents from Tuesday’s finish. January was 2.2 cents higher at $3.879. December crude oil rose 94 cents to $86.32/bbl.

Even though crude oil production in Texas continues to increase, drilling activity for future reserves has slowed because of weakness in natural gas prices and instability in crude oil markets, according to the latest Texas Petro Index (TPI).

Even though crude oil production in Texas continues to increase, drilling activity for future reserves has slowed because of weakness in natural gas prices and instability in crude oil markets, according to the latest Texas Petro Index (TPI).

Cash prices on average for weekend and Monday delivery gas gained 3 cents in Friday’s trading. Weather-driven weakness was noted at eastern points, but that was more than offset by strength in the Gulf of Mexico and Rockies. Futures trading was uninspired, and at the end of the day November had risen 0.7 cent to $3.611 and December had eased 2.3 cents to $3.877. November crude oil lost 21 cents to $91.86/bbl.