Natural gas bidweek players were able to breathe something of a sigh of relief that the devastating experience of March Bidweek was not repeated for the month of April. March saw most points nationally losing about a half-dollar, or more and NGI March National Bidweek Average came in at a lean $1.60. NGI’s April National Bidweek Average rose 8 cents to $1.68 amid trading and deal-making characterized as more or less routine.
Articles from Bidweek
If February bidweek was disappointing, March bidweek was a disaster. February bidweek saw the NGI National Bidweek Average fall 23 cents to $2.23 and some points traded positive. No such luck for March. No points followed by NGI came anywhere close to being in the black and most points lost about a half-dollar, or more. The NGI March National Bidweek Average fell a gut-wrenching 63 cents from February 2016 to $1.60, which is also $1.50 below the March 2015 bidweek average.
February natural gas bidweek prices slumped as buyers were confronted with medium-term temperature forecasts calling for mild temperatures east of the Mississippi. As a result, NGI’s National Bidweek Average fell a stout 23 cents to $2.23, and only a handful of points in the Northeast, Rocky Mountains and West Texas made it to the plus column.
A late December push of winter cold into the eastern half of the United States was all it took to energize bidweek buyers and draw the market out of a mild-weather morass. The NGI January National Bidweek Average posted a stout double-digit gain of 19 cents to $2.46, and although a few individual market points in the Northeast, West Texas and the Rockies failed to participate in the advance, all regions of the country were able to record gains.
The release of record storage data during December bidweek proved no help to buyers anticipating softer bidweek pricing resulting from burdensome inventories. The NGI National Bidweek Average rose a stout 20 cents to $2.27 and all but a few market points recorded gains of a dime or more.
With the exception of a few constrained northeast points bidweek quotes had the trajectory of a safe falling from a ten story building. Declines were broad and pervasive across nearly every market point, and the NGI National Bidweek Average fell a stout 29 cents to $2.07.
The traditional producing states of Texas and Louisiana suffered the brunt of the decline in October bidweek pricing with declines of up to a dime. With the exception of the Northeast, nearly all regions of the country were off by upwards of a nickel, and NGI’s National Bidweek Average came in at $2.36, down 7 cents from September bidweek and a whopping $1.19 below October 2014 bidweek.
September natural gas bidweek trading at first glance shows widespread declines of about 15 to 20 cents from August bidweek levels, but on further examination, it appears that hefty gains at Northeast points were able to pull NGI’s SeptemberNational Bidweek Average up to a more respectable drop of just 13 cents to $2.43.
August natural gas bidweek prices moved up about a nickel nationally as traders enjoyed what might be the last month of “normal” business before September and October production is expected to pack industry storage facilities.
Ample natural gas inventories, strong production and an unimpressive temperature outlook teamed to put downward price pressure on most bidweek…