Production from the dry gas Eagle Ford Shale, particularly in Webb County, TX, has skyrocketed, and so has Mexico’s gas demand. That would sound like an opportunity to anyone.
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NatGas Futures Drifting Lower Following Plump Storage Build
June futures slipped lower on Thursday morning after the Energy Information Administration (EIA) reported a storage injection for the week ended May 19 that was slightly greater than what traders were expecting. The EIA reported a storage injection of 75 Bcf, about 4 Bcf above consensus estimates, and prices fell after the number was released.
OPEC to Extend Production Pullback as U.S. Shale Output Soars
The global oil glut, created in part by surging U.S. unconventional production, has again forced the hand of the Organization of the Petroleum Exporting Countries (OPEC), which on Thursday agreed to extend supply reductions for another nine months beginning July 1.
NatGas Futures, Cash Inch Lower; Storage Receives Bearish Injection News
Physical natural gas for delivery Friday slipped lower in Thursday’s trading, with robust losses in the Northeast as well as softness in Appalachia and the Midwest offsetting modest strength in the Midcontinent, California, and the Rockies. The NGINational Spot Gas Average fell 1 cent to $2.92.
Traders Considering Seasonal Decline; June Called 3 Cents Lower
June natural gas is expected to open 3 cents lower Wednesday morning at $3.19 as traders factor in almost non-existent weather conditions along with a deteriorating technical environment. Overnight oil markets were mixed.
PJM Capacity Auction Shining Impact on Cheap Marcellus/Utica Natural Gas
PJM Interconnection released the results Tuesday of its capacity auction for the 2020-2021 period, with natural gas combined-cycle plants accounting for most of the new generation cleared at 2,350 MW.
Mexico Streamlining Upstream Auctions, Pursuing Natural Gas Storage
As Mexico proceeds with upstream and midstream natural gas reform, demand for gas continues growing and domestic supply can’t keep up. The market opening is a work in progress.
NatGas Cash, Futures Flip Flop; Cash Tumbles, But June Down Only A Penny
Natural gas cash and futures reversed roles from Tuesday’s trading on Wednesday, with the physical market for Thursday delivery plunging and spot June futures easing just a bit. In the physical market only one point followed by NGI made it to positive territory and the NGI National Spot Gas Average fell by 10 cents to $2.93.
Traders Mull Near-Term Cooling, Loss of Demand; June Seen A Nickel Lower
June natural gas is set to open 5 cents lower Tuesday morning at $3.28 as traders factor in moderating temperatures and a short-term loss of demand. Overnight oil markets retreated.
NatGas Futures Post Double-Digit Losses, But Cash Barely Notices
Gas for delivery Wednesday was unchanged in Tuesday’s trading as modest gains at a few Northeast points along with firm West Texas pricing was easily offset by the remainder of market points, which moved within a few cents of unchanged. The NGI National Spot Gas Average was $3.03, up 2 cents.