Spot gas prices for Wednesday delivery vaulted to record levels at some points as another incursion of a polar vortex was forecast to rake not only the East and Midwest but also make it as far south as Texas and the Southeast, dropping up to a foot of snow in some locations.
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February natural gas is set to open 4 cents higher Tuesday morning at $4.37 as traders assess oncoming cold in pivotal eastern markets and factor in a greater cold event than earlier expected. Overnight oil markets rose.
Columbia Gas Transmission added Friday (Jan. 24) to its continuing list (Jan. 21-23) of transport and storage critical days for portions of its Ohio and Pennsylvania marketing areas. In connection with the current storm sweeping the East, Columbia also is enforcing “specialized receipt required” at the Cecil, Paulding and Lebanon pipeline interconnects, the pipeline company reported on its electronic bulletin board.
When the polar vortex first arrived earlier this month, it drove record natural gas demand, prompted constraints on pipelines into New England and hampered delivery of other fuels, and now forecasters say the arctic cyclone could make a return appearance before the end of January.
Natural gas for weekend and Monday delivery showed losses at most points Friday, but a few points in the East and Northeast skewed the market with multi-dollar gains as traders loaded up ahead of snowy and blustery conditions expected early in the week.
Prices for Friday physical gas delivery moved higher across the country except for at a handful of eastern points. Traders Thursday elected to get most of their deals done prior to what was thought could be a major market mover: the issuance of weekly storage data by the Energy Information Administration (EIA), which came in at a record 287 Bcf.
The United States will be a global natural gas trading powerhouse by 2035 by which time the commodity’s market share will match that of oil and coal, BP plc’s top economist said Wednesday.
Physical prices for natural gas to be delivered Thursday inched higher at most points across the country on Wednesday as the market anticipated two pending events — weather and storage — that could have lasting impacts.
February natural gas is expected to open 6 cents higher Tuesday morning at $4.33 as weather forecasts notched a little colder by the end of the month. Overnight oil markets were mixed.
A vast majority of physical natural gas price averages across the country posted gains Tuesday as many regions, including much of the East, were bracing for another round of below-normal temperatures while the West Coast sweltered under warmer-than-normal conditions with lower-than-normal hydro power supplies.