Markets

For the second consecutive month, U.S. dry natural gas production in August was the highest for any month since the Energy Information Administration (EIA) began reporting gas production data, reaching 2.37 Tcf (76.5 Bcf/d), the agency said.

Following Friday’s sharply lower physical natural gas prices, deliveries for Tuesday proved to be a mixed affair.

December natural gas is expected to open 7 cents lower Friday morning at $2.19 as the technical picture continues to deteriorate and winter cold has yet to appear in forecasts. Overnight oil markets rose.

Demand for natural gas liquids transport/export capacity continues to grow, according to Enterprise Products Partners LP, which saw its third quarter results aided by increased ethane transport volumes.

For the second straight week, forwards markets moved lower for the period between Oct. 23 and Oct. 29 even after a bullish surprise storage report by the U.S. Energy Information Administration (EIA).

Western Canadian natural gas suppliers expect to keep on losing sales to rival U.S. merchants in Ontario, Quebec and the northeastern United States.

Until Friday, spot gas traded for next-day delivery at most points did not have to suffer the indignity of trading below $2, as November futures did prior to expiration on Tuesday. That all changed with natural gas traded for the weekend and Monday.

December natural gas is expected to open 3 cents higher Thursday morning at $2.33 as traders anticipate government storage figures to show an increase less than historical averages and near-term warmth appears largely baked into the market. Overnight oil markets fell.

Natural gas futures rose Thursday morning after the Energy Information Administration (EIA) reported an injection that was somewhat less than what the market was expecting.