Markets

Physical natural gas for Wednesday delivery traded mostly higher Tuesday as gains in Louisiana, Texas, the Midcontinent and Midwest outpaced temperature-driven declines at eastern points. The NGI National Spot Gas Average added 7 cents to $2.93.

Physical natural gas for Tuesday delivery shot higher Monday as the December futures contract went out like a lion and buyers made up for lean purchases ahead of the long holiday weekend.

The expiring December natural gas futures contract is expected to open 10 cents higher Monday morning at $3.19 as weather trends continue to favor cooler regimes going forward while production and drilling lag. Overnight oil markets rose.

December natural gas is expected to open 4 cents lower Wednesday morning at $2.94 as traders factor in expected record gas inventories and market exposure over the extended holiday weekend. Overnight oil markets fell.

Natural gas futures surged past $3 Wednesday morning after the Energy Information Administration (EIA) reported a storage withdrawal that was not what the market was expecting.

After climbing three straight sessions, natural gas prompt-month forward prices rose an average 15.6 cents between Nov. 18 and 22 as cold weather systems are finally making their way across large portions of the U.S., bringing rain and snow to some areas.

Natural gas for the extended holiday weekend worked lower Wednesday at nearly all market points as weather forecasts called for temperatures at or above seasonal norms.

It may have been a short three-day trading week, but you would never have known it from the size of the weekly gains. All but one point followed by NGI romped higher by double-digits, and the NGI Weekly Spot Gas Average jumped 41 cents to $2.70.

December natural gas is set to open unchanged Tuesday at $2.950 as traders look for additional cold that may act as a catalyst for further price advances. Overnight oil markets were mixed.