Abundant supply and low prices will drive consumption of natural gas in the industrial and electric power sectors to new levels in 2040 as exports of U.S. gas via pipeline and in liquefied form grow as well, according to the U.S. Energy Information Administration’s (EIA) Annual Energy Outlook 2014 (AEO2014) early release.
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Physical gas for delivery Tuesday took a page from futures and traded lower overall, with New England posting the greatest losses.
Natural gas for weekend and Monday delivery fell in most regions of the country in Friday’s trading. Stout gains were limited to a few points in the capacity-constrained New England region.
Led by some of the biggest names in the industry, North American natural gas marketers again reported significant sales declines in 3Q2013 compared with 3Q2012, with the top three marketers — BP plc, Shell Energy NA and ConocoPhillips — reporting a combined 7.53 Bcf/d (14.5%) decline, according to NGI’s 3Q2013 Top North American Gas Marketers Ranking.
Prices for natural gas to be delivered Friday were mostly quiet outside of the East, where multi-dollar drops in some locations were met by muti-dollar gains at some New England spots. A majority of points around the country managed to tack on a couple of pennies.
Fueled by the coldest air yet this heating season and cajoled by supportive futures prices, cash prices in the Northeast continued their meteoric rise Wednesday, stair-stepping higher in dollar increments as traders scrambled for molecules amid heavy heating demand. Meanwhile, temperatures across the rest of the nation moderated, albeit slightly, from last week’s frigid cold, and prices eased accordingly. In futures trading, January tacked on an even dime to close Wednesday at $4.337 and February followed suit to settle at $4.331. January crude oil dropped $1.07 to $97.44/bbl.
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.