Markets

Physical natural gas for weekend and Monday delivery fell hard and fell often in Friday trading as traders saw no need to commit to three-day deals, and near-term temperature forecasts dropped.

Nearly all U.S. points gained ground for the week ended July 21 and most points posted gains well into double digits. Gains at Northeast points were most impressive, with some points adding close to a $1.

August natural gas is set to open 3 cents lower Friday morning at $3.01 as overnight near-term weather models moderated, and traders see little in the way of upside potential. Overnight oil markets eased.

Final investment decisions (FID) within the global upstream sector are on pace to double from 2016, marking a positive turning point for the long-depressed oil and natural gas markets.

August natural gas forward markets rose an average 4.3 cents between July 14 and 20 as scorching temperatures this week lifted power burn to the highest levels of the summer so far, while longer-term weather forecasts continued to show some cooling in key demand regions, according to NGI’s Forward Look.

August natural gas is expected to open a penny higher Thursday morning at $3.08 as traders mull a weather picture calling for a cool New England with a warm West. Overnight oil markets rose.

California’s largest natural gas storage facility, Aliso Canyon, was cleared to reopen at limited capacity late Wednesday following months of rigorous inspections and well analysis by state engineering and safety enforcement experts.

August futures gained ground following a report by the Energy Information Administration (EIA) showing a natural gas storage injection that was less than what traders were expecting.

Natural gas and oil operators have begun dishing their second quarter results, and energy experts cite cautious optimism that the industry’s recovery will not be waylaid by stagnant commodity prices and lack of demand.