Markets

The Energy Information Administration (EIA) reported a 63 Bcf withdrawal from Lower 48 natural gas inventories for the week ending Nov. 30, on the higher end of market expectations but within the range.

The Organization of the Petroleum Exporting Countries, aka OPEC, and its Russian-led allies on Friday agreed to further reduce global oil output in an attempt to balance an overflowing market and stem falling prices.

A jittery natural gas market plagued by a historic storage deficit that has only worsened before the peak of the winter season got some good news on the weather front as outlooks showed warmer temperatures beginning next week, a trend that could last for the next several weeks. January forward prices plunged an average 41 cents from Nov. 29-Dec. 5, while the balance of winter (February-March) dropped an average 31 cents, according to NGI’s Forward Look.

Natural gas traders were not taking any chances in holding short positions on Friday given continuously fluctuating weather forecasts. The Nymex January gas futures contract rocketed 16.1 cents higher to settle at $4.488, while February climbed 16.1 cents to $4.378 and March rose 23.1 cents to $4.155.

While natural gas futures prices continued to swing wildly in both directions during the Dec. 3-7 period, cash market direction was more clear as mild start to the week quickly gave way to more frigid conditions by midweek.

Natural gas traders were not taking any chances in holding short positions on Friday given continuously fluctuating weather forecasts. The Nymex January gas futures contract rocketed 16.1 cents higher to settle at $4.488, while February climbed 16.1 cents to $4.378 and March rose 23.1 cents to $4.155.

January natural gas futures were trading 8.0 cents lower at $4.389/MMBtu shortly before 9 a.m. ET Thursday as forecasts showing milder conditions through mid-December continued to apply bearish pressure on prices.

Amid stiff competition from natural gas and renewables in the power sector, U.S. coal consumption in 2018 is on track to fall to its lowest level since 1979, the Energy Information Administration (EIA) said this week.

A jittery natural gas market plagued by a historic storage deficit that has only worsened before the peak of the winter season got some good news on the weather front as outlooks showed warmer temperatures beginning next week, a trend that could last for the next several weeks. January forward prices plunged an average 41 cents from Nov. 29-Dec. 5, while the balance of winter (February-March) dropped an average 31 cents, according to NGI’s Forward Look.