Markets

November natural gas is expected to open 3 cents lower Tuesday morning at $2.89 as forecasts call for warmer than normal temperatures across the nation’s midsection and traders attempt to determine the impact of Hurricane Matthew. Overnight oil markets were mixed.

While record power burn has slashed the 1,004 Bcf natural gas storage surplus over 2015 levels the industry saw at the beginning of April to just 90 Bcf as of Sept. 23, the warmer-than-normal weather many forecasters are predicting for October could reignite fears of inventories reaching a critical 4 Tcf by the end of the injection season, analysts say.

Gunvor USA LLC has opened a trading office in Houston that will trade natural gas, refined products and asphalt/bitumen. The venture is backed with a US$500 million credit facility.

Physical natural gas for Wednesday delivery moved within a few pennies of unchanged at most market points on Tuesday, although some locations in the East made an attempt to climb out of the sub-dollar doldrums.

At first glance it appeared that double-digit bidweek gains in producing regions from California and the Rocky Mountains to Texas and Louisiana might put a positive luster on October bidweek. However, steep declines in Appalachia and the Northeast offset any hope to a positive outcome and the NGI National Bidweek Average came in at $2.51, unchanged from September, and 15 cents higher than October 2015 bidweek.

Two Portland, OR-based utilities on Monday turned loose long-standing plans to expand natural gas storage capacity in the Pacific Northwest to service expanded gas-fired and renewable generation sources. The project involves a $128 million storage expansion.

Physical natural gas for Tuesday delivery rose in Monday’s trading as the market attempted to take back some of Friday’s 21-cent loss. Most points outside the East and Southeast traded within a few points of unchanged, and many eastern points staged double-digit advances as locales hit by a lack of weekend demand recovered from deeply oversold — and in some cases record low — readings.

November natural gas is set to open unchanged Monday morning at $2.91 as near-term weather is little changed and the technical landscape is still holding together. Overnight oil markets were mixed.

November natural gas is set to open 3 cents lower Friday morning at $2.93 as traders focus on at least another weak of light demand. Overnight oil markets fell.