July natural gas is set to open 2 cents lower Tuesday morning at $2.73 as traders look beyond the end of the month’s warm spell. Overnight oil markets retreated.
Articles from Markets
Severe heat hit Southern California Monday, driving temperatures into the triple digits and spiking the highest statewide electricity demand of the year with more to follow on Tuesday, but the taxed natural gas system appeared to be holding up, even with the state’s largest underground gas storage field closed.
Privately backed financial firms have close to $1 trillion ready to deploy into the global oil and natural gas sector, with one-quarter now planning acquisitions by year’s end that mostly target North America and the Asia-Pacific, a survey by Ernst & Young has found.
Physical gas for delivery Wednesday rose modestly in Tuesday’s trading as strong performances in the Midwest, Texas and Gulf Coast overshadowed weaker pricing in the Rockies, California and East.
July natural gas is expected to open 5 cents higher Monday morning at $2.67 as traders factor in extreme heat in Southern California and its likely impact on supply. Overnight oil markets gained.
Raymond James & Associates has increased its 2017/2018 West Texas Intermediate oil price forecast by $5.00/bbl, but cautioned that given the U.S. unconventional industry’s ability to post efficiency gains, the bias over time is for prices to move lower.
Summer’s official start began with a bang as next-day gas surged higher in Monday’s trading, lifted by a supportive screen and temperature forecasts calling for above normal readings. No points followed by NGI fell into the loss column, while gains upwards of 20 cents were common.
There were high-fives all around for natural gas traders for the week ended June 17. Not one of the points followed by NGI fell into the red, and most locations notched gains around 20 cents.