Weekly natural gas prices for the week ended Sept. 17 resembled something of a “tortoise and the hare” comparison, with the hare-like futures putting up double-digit gains and the physical market just plodding along.
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Very few physical natural gas market points made it to the positive side of the trading ledger Thursday as most traders hunkered down and got their deals done before the release of the Energy Information Administration’s (EIA) storage report.
October natural gas is expected to open unchanged Thursday morning at $2.89 as traders anticipate that government storage figures will be sharply higher than last week and close to historical averages. Overnight oil markets rose.
Natural gas futures traded lower but snapped back Thursday morning after the Energy Information Administration (EIA) reported a storage injection that was about in line with what the market was expecting.
October natural gas is set to open 5 cents higher Wednesday morning at $2.96 as traders discount moderating weather patterns and focus on a re-emergent bullish technical environment. Overnight oil markets eased.
Worldwide oil and natural gas investments fell for the second consecutive year in 2015 by 8%, lifted by efficiencies, pummeled by weaker finances and squeezed by robust outlays in renewables, the International Energy Agency (IEA) reported Wednesday.
The oil and natural gas bust beginning in 2015 was worse than many thought, fueling a spike in the U.S. default rate that rivaled the telecom industry collapse in the early 2000s, both in recorded bankruptcies and low creditor recoveries, Moody’s Investor Service said.
Both physical natural gas for Thursday delivery and futures were slow out of the blocks in Wednesday’s trading, with most market points fluctuating within a few cents of unchanged. The NGI National Spot Gas Average fell 2 cent to $2.68, and in the East falling power loads gave buyers little to no incentive to make incremental purchases for power generation.
October natural gas is expected to open a penny higher Tuesday morning at $2.92 as traders reassess higher power burns and what may be a realignment of supply and demand going forward. Overnight oil markets plunged.
Physical natural gas for next-day delivery ground higher Tuesday, with nearly all points adding a nickel or more and Henry Hub trading over $3 for the first time in more than a year.