Looking at the majority of market points for Tuesday natural gas deliveries, one might conclude it was a lazy summer day’s trading. However, Southern California and New England quickly put that to rest.
Articles from Markets
After natural gas markets failed to bat an eye at last week’s historic storage withdrawal, it’s no surprise to see forwards markets plunge by double digits this week.
Physical natural gas for weekend and Monday delivery, for the most part, mirrored the screen in Friday’s trading.
Not even a heavy-handed intervention by Mother Nature could keep weekly natural gas prices from sliding into the loss column. Hot, humid weather in New York, Philadelphia, and the East Coast sent heat indices deep into triple digits, but at the end of the week theNGI Weekly Spot Gas Average was 6 cents lower at $2.53.
September natural gas is set to open 3 cents higher Friday morning at $2.58 as traders see little likelihood of aggressive selling going into the weekend. Overnight oil markets were mixed.
The hits keep coming in Texas as the Lone Star State on Thursday set yet another power demand record for the week, according to the Electric Reliability Council of Texas (ERCOT).
BP plc has requested a rehearing of a FERC decision last month that affirmed the findings of an administrative law judge (ALJ) and levied a $20.16 million fine against the London-based supermajor in a 2008 market manipulation case, saying it “is not the product of reasoned decisionmaking and is not supported by substantial evidence.”
September natural gas is expected to open a penny higher Thursday morning at $2.57 as traders await inventory data that is expected to show additions continuing at below normal rates. Overnight oil market narrowly fell.
Natural gas futures slumped, then rebounded Thursday morning after the Energy Information Administration (EIA) reported a storage injection that was a bit more than what the market was expecting.