Markets

July natural gas is expected to open flat Wednesday morning at $2.70 as traders attempt to reconcile decidedly bearish fundamental factors against a nascent bullish technical argument. Overnight oil markets plunged.

Expect more asset impairments along with lower capital spending, reduced revenues and year-end reserves from many producers as the impact of depressed commodity prices is fully felt, Ernst & Young LLP (EY) said Wednesday. However, the firm’s most recent U.S. oil and gas reserves study looked at 2014 when times were brighter.

Prices for physical natural gas to be delivered Thursday were quiet in Wednesday’s trading, with most points fluctuating within a few pennies of unchanged. Buyers for electrical power generation had little incentive to purchase incremental volumes as next-day peak power prices fell modestly. Overall, the National Spot Gas Average was down a penny at $2.29.

July natural gas is expected to open flat Wednesday morning at $2.70 as traders attempt to reconcile decidedly bearish fundamental factors against a nascent bullish technical argument. Overnight oil markets plunged.

Expect more asset impairments along with lower capital spending, reduced revenues and year-end reserves from many producers as the impact of depressed commodity prices is fully felt, Ernst & Young LLP (EY) said Wednesday. However, the firm's most recent U.S. oil and gas reserves study looked at 2014 when times were brighter.

Prices for physical natural gas to be delivered Thursday were quiet in Wednesday's trading, with most points fluctuating within a few pennies of unchanged. Buyers for electrical power generation had little incentive to purchase incremental volumes as next-day peak power prices fell modestly. Overall, the National Spot Gas Average was down a penny at $2.29.

July natural gas is set to open unchanged Tuesday morning at $2.65 as traders note a tug-of-war between speculative sellers and market bulls saying all the unfavorable news is already in the market. Overnight oil markets rose.

A new low in California’s worsening drought was reached Monday when state officials reported that the state’s snowpack is down to zero, an inevitability after the measurement of 5% of normal when the same measurements were taken two months earlier.

Natural gas for Wednesday delivery slid by a few pennies in Tuesday’s trading as mild temperatures forecast for eastern metropolitan areas along with weak next-day power prices gave buyers little incentive to purchase incremental volumes.