Physical natural gas for delivery Thursday gained 12 cents on average Wednesday as traders factored in massive cold front working its way from the Rocky Mountains to the Midwest and points south. At the close, January futures had eased 1.6 cents to $3.960 and February also had shed 1.6 cents to $3.958. January crude oil gained $1.16 to $97.20/bbl.
Markets
Articles from Markets
Western, Midwest Gains Outdistance Weak East; Futures Ease A Penny
Natural gas scheduled for delivery Wednesday rose 2 cents on average in Tuesday’s trading, but the nominal rise masked greater market strength. If volatile points in the Northeast showing multi-dollar declines are subtracted from the figures, the overall gain comes in at 8 cents.
Canada to See Little Change in Winter Fuel Prices, Says NEB
Only slight price changes — and no winter market spikes — are in the forecast for the 2013-14 heating season by Canada’s National Energy Board (NEB).
Texas Freeze Slams Pioneer; Another Wintry Blast On Its Way
A sustained blast of icy weather across Texas last week put a halt to exploration and production (E&P) activity in the Permian Basin, Barnett and Eagle Ford shales, with Pioneer Natural Resources Co. indicating it could be weeks before the full impact is determined.
Cold, Demand to Remind Market of Storage Value, Developer Says
Gas price volatility has declined and forward spreads have contracted. With plenty of shale gas around, “who needs gas storage capacity?” is a question on the lips of some. But with the heart of winter fast approaching, attitudes could change, a storage developer told NGI.
Rockies, Midwest Firm Ahead Of Cold; Futures Add 3 Cents
Natural gas for delivery Tuesday added 6 cents on average in Monday’s trading, with Midwest points up a couple of pennies as a major influx of cold air was forecast to slide into the area by midweek. At the close January natural gas futures had gained 3.4 cents to $3.988 and February had risen 2.7 cents to $3.984. January crude oil gained $1.10 to $93.82/bbl.
Physical, Futures Chart Different Courses; January Adds 3 Cents
Physical natural gas for Sunday and Monday delivery tumbled nearly 20 cents in Wednesday’s trading, yet if Boston, New York and Philadelphia are excluded from the analysis, the decline comes in at a more moderate 11 cents.
WSI’s December Forecast Could Lead to Muted Gas Demand, ESAI Says
The northern United States and southern Canada will be dominated by colder-than-normal temperatures over the next three months, while above-normal temperatures are expected across the U.S. South, according to forecasters at Weather Services International (WSI). The heavily populated Boston-to-Washington, DC, corridor may avoid much of the winter’s coldest weather, WSI said.
Broad Declines Offset Northeast Strength; December Expires Firm
Spot gas for Wednesday delivery on average fell a penny in Tuesday’s trading. However, if one is willing to assume that market dynamics in the transportation-challenged Iroquois-Algonquin corridor distort the broader national market, removing those prices shows a 6-cent decline overall.
Technical Issues Push CME to Revise Certain Energy Settlement Prices
CME Group reported last week that due to a “technical issue” fractional changes have been made to the contract expiration prices of 10 Nymex energy products and related instruments settled between May and October 2013. This is the second time in less than a month that CME has had to issue an energy contract-related settlement revision.