Markets

January natural gas is expected to open 5 cents higher Tuesday morning at $4.28 as traders focus on the demand side of the equation and weather forecasts continue to call for bone-chilling cold. Overnight oil markets rose.

In a series of separate votes Tuesday, five federal agencies — the Board of Governors of the Federal Reserve System, Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and the Securities and Exchange Commission (SEC) — all issued final rules developed jointly to implement the Volcker Rule, which limits risk-taking by banks with federally insured deposits.

Physical natural gas for delivery Wednesday retreated around a dime on average with declines in the Midcontinent, Rockies and California more than offsetting gains at eastern points.

January natural gas is expected to open 7 cents higher Monday morning at $4.19 as traders turn their attention to forecasts calling for cold weather to impact Northeast and eastern markets. Overnight oil markets eased.

The total volume of pipeline capacity traded by the top 20 gas pipeline capacity trading players was up 106% this year over 2012 volumes, surpassing 15.8 Bcf/d, according to Skipping Stone’s Capacity Center. It marks the fourth consecutive annual increase in the volume of capacity traded, according to the firm.

Physical natural gas for delivery Tuesday soared 66 cents on average in trading Monday as the Arctic chill continued. Blizzard-like weather maintained a stranglehold on key eastern and Midwest energy markets.

Winter Storm Cleon on Friday was creating a “significant ice event” from the Great Plains through the Interior, with snow expected to move into the Northeast by early Saturday, the National Weather Service (NWS) said. On its heels is twin brother Dion, which into Monday was expected to deliver a second punch of wintry weather from the Pacific Coast all the way to the Northeast.

Aging power plants, competitive natural gas prices and increasingly strict environmental regulations will drive continued growth in demand for gas-fired power generation in the Midcontinent Independent System Operator (MISO) region, according to a MISO-commissioned study released Friday. The region’s gas supply outlook is poised to benefit from new sources of production, provided appropriate infrastructure development occurs.

The governors of six New England states have committed to work together with the Independent System Operator of New England (ISO New England) to advance an energy infrastructure initiative that diversifies the region’s energy supply portfolio while ensuring that the benefits and costs of transmission and pipeline investments “are shared appropriately” among the states.