Forward Look

Natural gas forward prices bounced back this week by an average of more than 10 cents as conditions became oversold thanks to several weeks of double-digit declines across the front of forward curves, according to NGI’s Forward Look.

Natural gas forwards markets fell an average of 13 cents for April as market players brushed off a surprise storage report and remained fixated on forecasts showing mild conditions over much of the country during the next two weeks, according to NGI’s Forward Look.

A springlike forecast for the next couple of weeks and a very bearish storage report sent natural gas forward prices even lower during the period Feb. 19 and 25, NGI’s Forward Lookdata shows.

When we mentioned during the second week of February that it would take either significant heating demand or bullish storage news to end the slide natural gas prices have been on, we were wrong.

It’s going to take some significant heating demand or bullish storage news to end the slide natural gas forwards prices have been on, but this wasn’t the week that was going to happen.

Uncertainty in long-term weather forecasts, ample supplies and near-record production in the Northeast sent natural gas forwards markets in that region down more than double most other markets for the period between Jan. 29 and Feb. 4, NGI Forward Look data shows.

March natural gas prices climbed as much as 5 cents during the last week of January as storage news and weather forecasts provided a double dose of support for markets, NGI’s Forward Lookdata shows.

It’s apparently going to take a lot more than the latest “snowpocalypse” to impress natural gas forwards markets as February fixed prices gained only a few pennies at most market hubs, while Northeast points continued to decline by the double digits, NGI’s Forward Look data shows.

The slide that natural gas forwards started on Jan. 8 continued in full swing through Jan. 14 as February fixed prices shed anywhere from 25 cents to $1.70 on unconvincing weather forecasts and a surprise storage report, NGI’s Forward Look data shows.