A vast majority of physical natural gas price averages across the country posted gains Tuesday as many regions, including much of the East, were bracing for another round of below-normal temperatures while the West Coast sweltered under warmer-than-normal conditions with lower-than-normal hydro power supplies.
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February natural gas is expected to open 16 cents higher Monday morning at $4.21as traders digest new weather reports that are calling for a return to colder-than-normal conditions in the near and intermediate terms. Overnight oil markets sagged.
With below normal temperatures expected to make a return Tuesday and Wednesday, physical gas for delivery Tuesday rose sharply in Monday’s trading, with only a handful of points nationally trading lower.
February natural gas is set to open a penny lower Friday morning at $3.99 as traders balance a long heating season ahead with a stable supply deficit. Overnight oil markets rose.
Physical gas for delivery Friday fell hard and fell often in Thursday’s trading. No points made it to the positive side of the ledger, and the greatest losses occurred in New England and the Mid-Atlantic.
A Gulf Coast natural gas storage operator’s application to abandon capacity solely due to weak market conditions is contrary to the public interest, would set a dangerous precedent if granted, and is not supported by FERC policy, the Commission was told in a Tuesday filing.
With the record cold giving way to more seasonal winter temperatures, natural gas prices for Thursday delivery continued to retreat on Wednesday. Losses were widespread, ranging from a low of just 10 cents in Southern California to multiple-dollar losses at points around New York City.
As cold — albeit waning — continued to grip much of the United States Tuesday, power plants in PJM Interconnection and ISO New England wereimpacted by natural gas delivery issues and/or high prices for the fuel. The Energy Information Administration (EIA) said pipelines into New England were constrained by the Polar Vortex. Meanwhile, throughput at a central Alabama gas utility was running at 10-year record levels.
Northeastern physical natural gas prices for gas to be delivered on Wednesday began their return to Earth’s orbit from Monday’s all-time highs as the record cold temperatures populating much of the country Tuesday were expected to subside.