Markets

Many traders appeared to have gotten deals done before the Energy Information Administration (EIA) storage data on Thursday, which may have insulated the physical market from the free-falling futures following a withdrawal report of just 94 Bcf, about 20 Bcf less than market expectations.

The expiring February futures contract is expected to open 7 cents lower Wednesday morning at $2.91 as traders factor in yet another modification to the near-term weather outlook. Overnight oil markets were mixed.

Merger and acquisition (M&A) activity in the U.S. oil and gas industry hit a decade high in 2014, with investors still clamoring for U.S. assets, but a marked shift was evident in November as commodity prices declined.

Next-day gas for Thursday delivery fell hard and often in Wednesday’s trading as temperature forecasts in key market centers showed a warming trend and power prices retreated.

February natural gas is set to open 6 cents higher Tuesday morning at $2.94 as near-term weather outlooks turn cooler. Overnight oil markets were narrowly mixed.

Physical natural gas for delivery Wednesday was mixed in Tuesday’s trading, as stout declines at Northeast points were able to dominate with lesser gains in the Gulf, Rockies, Midwest, Midcontinent and California. Overall, NGI’s National Spot Gas Average shed 14 cents to $3.30.

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

The physical natural gas market proved to be a divided affair, with gas for delivery Tuesday at eastern points in the path of the Northeast blizzard posting multi-dollar gains, while those more in alignment with the Henry Hub ended up easing a few pennies.

Voters in the town of Chelsea in Maine’s Kennebec County have approved the designation of a tax increment district that will generate revenue from natural gas transmission pipelines that the town plans to devote to economic development over the next 30 years.