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Natural Gas Production Plunges Amid Arctic Blast, Spurring Spot Price Surge

Natural Gas Production Plunges Amid Arctic Blast, Spurring Spot Price Surge

Extreme cold that permeated much of the Lower 48 throughout the long Martin Luther King Jr. Day holiday weekend and into the current trading week at once sent natural gas demand soaring and froze wells, causing steep cuts to production that carried into Tuesday. Temperatures over parts of the Mountain West, Plains and Midwest plunged…

January 16, 2024
Natural Gas Futures Reverse Declines as Weather Models Queue Up Cold Shots; Cash Slides

Natural Gas Futures Reverse Declines as Weather Models Queue Up Cold Shots; Cash Slides

February natural gas futures rebounded from early weakness Monday to settle shy of $3.000/MMBtu as weather models firmed up expectations for more heating demand from this week’s two winter storms and colder weather into next week. The February Nymex natural gas futures contract rose 8.7 cents day/day to settle at $2.980, after trading across a…

January 8, 2024
Natural Gas Futures Finish Monday Slightly Higher as Sharper Gains Relinquished

Natural Gas Futures Finish Monday Slightly Higher as Sharper Gains Relinquished

January Nymex natural gas futures extended a relief rally into the fourth trading day Monday as hints of colder January weather provided some support, but weather and fundamental outlooks suggested the upside movement would be short lived. At A Glance: Futures reverse early larger gains Supply outweighs brief weather support Cooldown helps cash mostly higher…

December 18, 2023
Coastal Winter Natural Gas Basis Premiums Shrink as Weather Disappoints Bulls

Coastal Winter Natural Gas Basis Premiums Shrink as Weather Disappoints Bulls

The combination of unseasonably light weather-driven demand and record-level production continued to deal one bearish blow after another to regional natural gas prices during the Dec. 7-13 trading period, data from NGI’s Forward Look show. Traders locked in fixed price discounts from coast-to-coast for the period, with Henry Hub down to $2.342/MMBtu for January delivery,…

December 15, 2023
January Natural Gas Crashes as Winter Weather Lacks Staying Power; Cash Prices Mostly Up

January Natural Gas Crashes as Winter Weather Lacks Staying Power; Cash Prices Mostly Up

Natural gas futures cratered Monday, hammered by soaring natural gas production and a lack of weather-driven demand. At A Glance: Front month sinks 15.0 cents Mild weather persists California spot prices rise The January Nymex natural gas contract settled 15.0 cents lower at $2.431/MMBtu. The front-month reversed earlier losses to a $2.294 intraday low. February…

December 11, 2023
January Natural Gas Futures Retreat Despite Outlook For Large Storage Withdrawal

January Natural Gas Futures Retreat Despite Outlook For Large Storage Withdrawal

Updated weather forecasts pointed to ongoing mild conditions that would generate a lack of heating demand through the first half of December. The outlook drove January natural gas futures another leg lower, even as the market eyes what could be the first triple-digit withdrawal from inventories of the season in data due out Thursday. At…

December 4, 2023
Natural Gas Futures Rally On Colder Shift in Forecasts; Cash Prices Jump

Natural Gas Futures Rally On Colder Shift in Forecasts; Cash Prices Jump

Natural gas futures found fresh footing Monday for the first time in six sessions, supported by a cold shift in late November forecasts, while bears eyed next opportunities with supply still ample and another potential disruption at the Freeport LNG facility in Texas. At A Glance: Prompt month ends five-session slide Production jumps near 106…

November 13, 2023
U.S. Natural Gas Spot Prices to Average $3.40 This Winter and Output to Hold Near 105 Bcf/d, EIA Says

U.S. Natural Gas Spot Prices to Average $3.40 This Winter and Output to Hold Near 105 Bcf/d, EIA Says

Henry Hub natural gas spot prices will average $3.40/MMBtu this winter as mild weather and strong production should help to maintain a healthy supply buffer, the U.S. Energy Information Administration (EIA) said in updated projections published Tuesday. In its latest Short-Term Energy Outlook (STEO), EIA recorded an average spot price at the national benchmark of…

November 7, 2023
Natural Gas Futures Stuck in Narrow Trading Band as Weather Demand Subsides; Spot Prices Advance

Natural Gas Futures Stuck in Narrow Trading Band as Weather Demand Subsides; Spot Prices Advance

Natural gas futures traded in a tight range of gains and losses to kick off the trading week, and the front month ultimately trended up slightly despite falling temperatures and waning weather-driven demand. At A Glance: Prompt month posts tiny gain Production above 100 Bcf/d NGI models 52 Bcf injection Coming off back-to-back modest gains…

September 11, 2023
Natural Gas Futures Prices Still Sluggish, but Eke Out Modest Gain

Natural Gas Futures Prices Still Sluggish, but Eke Out Modest Gain

Trading action along the Nymex natural gas futures curve was like watching paint dry on Monday, with the prompt month swinging in a tight range given no major changes to fundamentals. The September Nymex gas futures contract settled at $2.795/MMBtu, up 2.5 cents from Friday’s close. October futures tacked on 1.6 cents to $2.898.  At…

August 14, 2023