California’s mandate to grow energy storage is following its increased use of renewable-based electric generation sources, according to Navigant Research. During a webinar Tuesday Navigant consultants examined increasing renewable power on the U.S. grid.
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Physical gas for Thursday delivery managed double-digit gains in Wednesday’s trading as a strong screen pulled up all points trading in relationship to the Henry Hub, while most Northeast and eastern points were driven by weather changes and proximate market forces.
February natural gas is expected to open 8 cents higher Tuesday morning at $2.87 as near-term weather forecasts turn slightly cooler and timing issues continue. Overnight oil markets continued their steep descent.
Next-day gas prices for Wednesday delivery traded about a dime lower in Tuesday’s trading. Scattered gains in the Gulf and San Juan Basin were unable to counter broad but not terribly deep losses at most market points, and the overall market fell 18 cents to average $3.22.
February natural gas is expected to open 9 cents lower Monday morning at $2.86 as forecasters call for a broad and pronounced warm-up in the near term and analysts anticipate thinner storage withdrawals going forward. Overnight oil markets fell hard.
Sustained lower oil prices could slow natural gas production and market growth as the lower prices slow growth in U.S. shale oil plays, according to a first quarter 2015 Energy Outlook from consulting firm ICF International. Some long-term gas demand fundamentals are weakened by sustained low oil prices, ICF said.
There was no stopping the sharp slide Northeast natural gas forward basis prices have been on this week, with prompt-month prices plunging as much as nearly $2, as weather forecasts are calling for a warm-up in temperatures after a few more days of frigid conditions.
Physical natural gas for Tuesday delivery was generally lower in Monday’s trading, but a one-day cold snap along with surging power prices was able to elevate New England and to a lesser extent Marcellus prices. Those gains were unable to offset broad setbacks at most other market points including the Mid-Atlantic, Midwest, and Midcontinent.
February natural gas is set to open unchanged Friday morning at $2.93 as traders grapple with a fluctuating weather outlook within what analysts describe as an overall bearish trading framework. Overnight petroleum markets eased.
Bitter cold swept across much of the country and well into the South last week, bringing consequences to producing regions as well as market areas. As has been the case during past cold snaps, producers, pipelines and distribution companies held their own, for the most part.