Markets

True to form, the near 30-cent advance in the November futures for the week ended Oct. 7 augured higher weekly cash prices the following week. For the week ended Oct. 14, the NGI National Weekly Spot Gas Index gained a healthy 16 cents to $2.67, but in an environment of “what have you done for me lately,” traders will be watching to see if the futures advance of 9.2 cents for the week ended Oct. 14 will lift weekly cash quotes again.

November natural gas is set to open unchanged Friday morning at $3.34 as traders consolidate positions before the weekend. Overnight oil markets were mixed.

November natural gas forward prices averaged 11 cents higher between Oct. 7 and 13, setting the stage for hefty double-digit increases across the front half of the curve and reminding the market that weather isn’t always necessary to spook prices.

Three-day deals for weekend and Monday natural gas were a tough sell in Friday’s trading, and anyone trading New England next-day markets saw prices decline by more than a dollar.

November natural gas is set to open 2 cents lower Thursday morning at $3.19 as traders expect storage data to show a greater increase than popular surveys. Overnight oil markets were narrowly mixed.

With an eye toward winter weather, natural gas price volatility is likely to return in 2017, given the prospect for potential capacity constraints and ever-larger exports to Mexico to support gas-fired generation, according to ConocoPhillips’ Jim Duncan, who directs commodity market research.

Natural gas futures gained ground Thursday morning after the Energy Information Administration (EIA) reported a storage injection that was less than what traders and analysts were anticipating.

The Energy Information Administration (EIA) said Thursday that it expects Henry Hub natural gas spot prices to average $3.04/MMBtu in 4Q2016 and $3.07/MMBtu next year, substantially higher than the agency’s previous 2017 price forecast.

Physical natural gas trading for Friday delivery took a backseat to more exuberant futures activity on Thursday. Moderate temperatures kept a lid on physical prices, but futures raced higher, led by a series of government reports indicating not only improved pricing but a thinner addition to storage inventories than the market expected.