Markets

August natural gas is set to open 5 cents higher Tuesday morning at $2.98 as weather models slide forecast heat in a more easterly direction and storage surplus contraction is back in play. Overnight oil markets fell.

The first days of operations under Mexico’s new natural gascapacity reservation system have gone relatively smoothly, according to pipeline system operator Centro Nacional de Control del Gas Natural (Cenagas).

The first days of operations under Mexico’s new natural gascapacity reservation system have gone relatively smoothly, according to pipeline system operator Centro Nacional de Control del Gas Natural (Cenagas).

For a second consecutive month, the Energy Information Administration’s (EIA) has lowered its natural gas price forecast, saying it expects Henry Hub spot prices to average $3.10/MMBtu this year and $3.40/MMBtu next year.

Both natural gas cash and futures marched higher Tuesday, with traders citing ongoing heat as the culprit and the market starting to get back into full swing following the holiday.

Physical natural gas for Tuesday delivery romped higher Monday as traders digested warmer than expected temperatures and estimates of cooling load were coming in above normal. Healthy advances in the Northeast, Appalachia and Louisiana dominated flat pricing in California and mixed pricing in Texas. The NGI National Spot Gas Average gained 8 cents to $2.71.

August natural gas is expected to open 6 cents higher Monday morning at $2.92 as more deferred weather forecasts called for incrementally warmer temperatures. August crude oil probed new lows.

While many folks across the United States celebrated the Independence Day holiday gorging on hot dogs and hamburgers, natural gas market bears proved to be still ravenous after the holiday, sending August forward prices down an average 14 cents between June 30 and July 6, according to NGI’s Forward Look.

August natural gas is set to open 3 cents higher Friday morning at $2.92 as traders factor in a modest increase in forecast cooling loads. Overnight oil markets fell.