Markets

For the second consecutive month, the United States in June sent the most natural gas to Mexico through pipelines of any month on record, reaching 105.84 Bcf (3.53 Bcf/d), according to Energy Information Administration (EIA) data.

September natural gas bidweek bulls regained some of their footing following August Bidweek’s 23-cent setback to $2.43. It wasn’t quite the same as July’s 86-cent surge, but the NGI September 2016 National Bidweek Average rose 8 cents to $2.51, which coincidentally is 8 cents higher than the September 2015 average of $2.43.

Tensions eased in the Gulf of Mexico (GOM) Thursday, with shut-in numbers declining and workers preparing to head back to platforms, as Hermine, upgraded to hurricane status, made its long-awaited move toward the Florida coast.

The Electric Reliability Council of Texas (ERCOT) said Thursday that it expects to have enough power generating capacity available to meet fall and winter demand.

Traders for next-day natural gas deliveries laid low Thursday prior to the often market-moving Energy Information Administration (EIA) storage report. Benign weather conditions across the country also gave traders little incentive to purchase incremental supplies, and the NGI National Daily Spot Gas Average shed 6 cents to $2.57.

October natural gas futures are expected to open 2 cents lower Thursday morning at $2.87 as traders balance a government report expected to show the largest inventory increase in nearly 2 months, with tropical storms expected to lessen Southeast demand. Overnight oil markets retreated.

Natural gas futures took a hit Thursday morning after the Energy Information Administration (EIA) reported a storage injection that was a greater than what traders were expecting.

October natural gas is set to open 2 cents higher Wednesday morning at $2.85 as traders factor in production losses resulting from weather-driven Gulf of Mexico shut-ins. Overnight oil markets fell.

The global oil supply is tightening, and markets should move closer to balance by the end of this year, but it’s too early for “any improvement in price” to affect exploration investments because operator confidence and balance sheets still need to be repaired, Schlumberger Ltd.’s operations chief said Tuesday.