Markets

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.

It’s no surprise that natural gas couldn’t sustain $3 as the shoulder season got into full swing this week, with November forward prices averaging 7.3 cents lower at $2.74 between Sept. 23 and 29, according to NGI’s Forward Look.

Natural gas trading Friday was a tale of three markets: physical gas outside Appalachia and the Southeast, physical gas within Appalachia and the Southeast, and futures.

A string of weekly advances came to a screeching halt with the four-day trading week ended September 29. Only two of the points followed by NGI reached the positive side of the trading ledger and the NGI Weekly Spot Gas Average skidded 14 cents to $2.58. Most points outside Appalachia and the East were down about a dime, but outsized double-digit declines ruled most of New England, the Mid-Atlantic, and the Southeast.

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.

It’s no surprise that natural gas couldn’t sustain $3 as the shoulder season got into full swing this week, with November forward prices averaging 7.3 cents lower at $2.74 between Sept. 23 and 29, according to NGI’s Forward Look.

November natural gas is set to open a penny lower Thursday morning at $2.99 even though traders expect a government report to show a hefty reduction in the ongoing storage surplus. Overnight oil markets were mixed.