Forward Look

Northeast natural gas forwards markets stole the show this week as frigid weather remains in the high-demand region, with key market hubs putting up double-digit gains in an otherwise lackluster market.

Natural gas forwards markets remain unimpressed with the recent weather systems hitting the U.S. Midwest and Northeast, with the February package barely budging at most market hubs as it slid off the board, and March sluggishly took over the prompt month position.

Natural gas forwards markets were generally lower this week as unconvincing weather forecasts, returning production and bearish storage data weighed on prices.

Natural gas forwards markets in the U.S. Northeast were revived this week, with prompt-month basis prices at the volatile New England hub surging more than $2 on a host of factors, including one that a regional trader said had nothing to do with fundamentals.

There was no stopping the sharp slide Northeast natural gas forward basis prices have been on this week, with prompt-month prices plunging as much as nearly $2, as weather forecasts are calling for a warm-up in temperatures after a few more days of frigid conditions.

Natural gas forward basis markets ended 2014 on a downslope, falling under the pressure of a bearish storage report and apparent little confidence in weather forecasts ahead of the New Year’s holiday.

Natural gas markets were lower across the board as the Christmas Eve storm projected to hit the U.S. is now expected to bring cold air and rain, instead of snow, to key market regions like the Midwest and Northeast.

Natural gas forwards markets were generally stagnant during the third week of December as traders opted for a wait-and-see approach regarding the latest weather forecasts, which show a winter storm developing on Christmas Eve.

Natural gas forwards markets were a mixed bag for the second week of December as colder forecasts for the end of the month bolstered some key Northeast points, while generally mild conditions throughout the rest of the U.S. pressured other regions.