Markets

December natural gas is expected to open 4 cents higher Thursday morning at $2.93 as weather models suggest a pattern leading to additional cold. Overnight oil markets were mixed.

As Canada’s eastern natural gas storage and trading hub put an expansion into action on its 75th anniversary, a surge of western production began flowing Wednesday with a boost from a deep cross-country pipeline toll cut.

December futures rose Thursday following a report by the Energy Information Administration (EIA) showing a storage injection of 65 Bcf, about 3 Bcf greater than consensus estimates.

U.S. natural gas exports to Mexico have been on a clear uptrend in recent months, but that rise took a noticeable pause in August. Pipeline shipments to Mexico were flat for the month, but liquefied natural gas (LNG) exports from Sabine Pass dropped to their lowest level of the year.

Physical markets rebounded from Wednesday’s drubbing and natural gas for Friday delivery sported double-digit gains at most locations. Strength was seen across the board from Texas, Louisiana, the Midcontinent, Midwest, Rockies and California.

December natural gas is expected to open a penny higher Wednesday morning at $2.91 as overnight weather data turned slightly cooler. Oil markets gained ground.

A 2,800% increase in Pennsylvania’s natural gas production between 2007 and 2016 has dramatically decreased the price all consumers in the state pay for the fuel, according to a study released by the University of Pennsylvania’s Kleinman Center for Energy Policy.

Natural gas bidweek trading for November was a study in contrasts, with double-digit losses in the nation’s midsection balanced by hefty gains in Appalachia, the Northeast, Rockies and California.

Physical natural gas for Thursday delivery took another step lower in Wednesday trading as steep declines in New England and Mid-Atlantic prices tugged the market lower.