Natural gas trading Friday was a tale of three markets: physical gas outside Appalachia and the Southeast, physical gas within Appalachia and the Southeast, and futures.
Articles from Markets
A string of weekly advances came to a screeching halt with the four-day trading week ended September 29. Only two of the points followed by NGI reached the positive side of the trading ledger and the NGI Weekly Spot Gas Average skidded 14 cents to $2.58. Most points outside Appalachia and the East were down about a dime, but outsized double-digit declines ruled most of New England, the Mid-Atlantic, and the Southeast.
November natural gas is set to open 3 cents lower Friday morning at $2.93 as traders focus on at least another weak of light demand. Overnight oil markets fell.
It’s no surprise that natural gas couldn’t sustain $3 as the shoulder season got into full swing this week, with November forward prices averaging 7.3 cents lower at $2.74 between Sept. 23 and 29, according to NGI’s Forward Look.
November natural gas is set to open a penny lower Thursday morning at $2.99 even though traders expect a government report to show a hefty reduction in the ongoing storage surplus. Overnight oil markets were mixed.
The upcoming winter could be an extended one from the northern Plains to the natural gas-hungry population centers of the eastern United States, with cold and snowy conditions stretching into the spring, while the southern half of the nation is expected to be relatively mild and dry, according to a long-term forecast issued Wednesday by AccuWeather.
Natural gas futures temporarily gained ground Thursday morning after the Energy Information Administration (EIA) reported a storage injection that was lower than what the market was expecting.
Physical natural gas continued to grind lower Thursday as traders scurried to get deals done before the weekly Energy Information Administration (EIA) storage report.
Some of Pennsylvania’s leading private and public sector economic development organizations are stepping-up their efforts to expand markets for natural gas in the state as the upstream and midstream booms of years past are increasingly giving way to more downstream opportunities.
Natural gas prices touched $3.00/Mcf in September and the forward curve is averaging $3.12 in 2017, but domestic prices could be skewed to the downside over the longer term, according to Sanford C. Bernstein & Co.