Markets

February natural gas is expected to open 6 cents lower Thursday morning at $3.84 even though weather forecasters call for a second round of cold in about two weeks. Overnight oil markets were mixed.

Natural gas futures traded higher, then lower, but still remained in negative territory Thursday morning after the Energy Information Administration (EIA) reported a storage withdrawal that was greater than what traders were expecting.

Northeastern British Columbia (BC) will remain a Canadian sweet spot for natural gas and liquid byproducts supply development in 2017, triggering construction of new processing and storage facilities along the Alaska Highway.

Physical natural gas for Friday and Saturday delivery traded higher Thursday morning as traders scurried to get their deals done before the release of the Energy Information Administration (EIA) storage report.

The expiring January natural gas futures contract is set to open 5 cents lower Wednesday morning at $3.71 as traders tinker with the timing of anticipated market-moving cold next week. Overnight oil markets were mixed.

Physical gas for delivery Thursday moved little in Wednesday’s trading as gains in Texas, the Southeast and Appalachia narrowly offset weakness in the Northeast, Rockies and California. The NGI National Spot Gas Average rose 1 cent to $3.61.

January natural gas is set to open 10 cents higher Tuesday morning at $3.76 as traders brace for another onslaught of inventory-pulling cold expected to traverse deep into the Midwest. Overnight oil markets rose.

A “very slight and intermittent” methane leak was detected last Saturday by infrared monitoring at Southern California Gas Co.’s (SoCalGas) Aliso Canyon underground natural gas storage facility in Los Angeles, the Sempra Energy gas-only utility said. The leak was at the wellhead of the storage well (SS 25), which was the source of a four-month leak before it was permanently sealed earlier this year. SoCalGas officials described this latest emission as a continuation of “off-gassing” from soil in the area. Saturday’s release coincides with recent heavy rains throughout Southern California. “It is not believed to pose a present or potential hazard to human health, safety or the environment,” a SoCalGas spokesperson said. The 3,600-acre storage field otherwise has been clear of anomalies or discernible odors, according to SoCalGas’ fenceline infrared monitoring system and ongoing visual inspections.

Returning after the holiday weekend, natural gas bulls looked to regain control of the futures and cash markets on reports that the recent warm-up is expected to be short-lived for much of the country. NGI’s National Spot Gas Average on Tuesday increased 9 cents to $3.60, and the January futures contract added 9.9 cents to close the day’s regular trading session at $3.761.