May natural gas is expected to open a penny lower Monday morning at $2.63 as weather forecasts prove variable and analysts pile on the bearish bandwagon. Overnight oil markets slipped.
Articles from Markets
The expiring April natural gas futures contract is set to open 3 cents lower Friday morning at $2.64 as traders see continued market weakness yet have to deal with erratic weekend weather conditions. Overnight oil markets fell.
Physical natural gas prices nationally for weekend and Monday delivery were a sea of red ink on Friday as traders studied weather forecasts calling for colder Canadian air to mostly stay north of the border. The only points that recorded gains Friday were the Algonquin Citygate and those tied to the Marcellus Shale, which often times follow their own set of fundamentals due to the region’s complex lineup of supply glut and capacity constraints.
Natural gas futures scooted lower following the release of government inventory figures showing a storage build somewhat greater than what traders were looking for.
Spot gas prices for Friday delivery came in two sizes in Thursday’s trading: large, if you were in the Northeast dealing with lingering cold and an outlook for colder temperatures heading into the weekend, and small, if you were west of the Mississippi.
April natural gas is expected to open a penny lower Wednesday morning at $2.78 as traders factor in a slight warming trend and recalculate storage. Overnight oil markets rose.
Spending on upstream investments by nearly two dozen international oil and natural gas companies in the final three months of 2014 was down $77 billion (12%) compared with the same period in 2013, according to the Energy Information Administration (EIA).
Buyers were in the driver’s seat Wednesday as natural gas traded for Thursday delivery fell not so hard, but often. Gulf, Midwest, Rockies and West Texas generally recorded losses of less than a nickel, and a few points made it into the black, but declines were greatest at eastern points as a weak power environment conspired with above normal temperatures to send Northeast prices lower on average by about 20 cents.
A pipeline proposed by PennEast Pipeline Co. LLC to connect Marcellus Shale natural gas with markets in eastern Pennsylvania and New Jersey would have saved consumers more than $890 million during the winter of 2013-2014 in natural gas and electricity costs, according to an analysis commissioned by PennEast.