Markets

The Natural Gas Supply Association (NGSA) has recommended that the Commodity Futures Trading Commission (CFTC) tweak a proposed supplement to its position limits rule, after identifying three specific areas of concern.

The price spotlight Wednesday was on New York, both upstate and downstate, as sultry heat was forecast to envelope the eastern portion of the state. Gas for next-day delivery added a few pennies to a nickel in Texas, the Midwest, Midcontinent and Louisiana, but deliveries to the East, and New York in particular, posted gains of more than 20 cents. The NGI National Spot Gas Average rose 6 cents to $2.59.

August natural gas is expected to open 5 cents higher Wednesday morning at $2.78 as traders continue to focus on supportive weather, but they concede the market needs to break recent highs to re-establish any uptrend. Overnight oil markets fell.

A market manipulation case brought against Total Gas & Power North America Inc. (TGPNA) by FERC’s enforcement staff “suffers from multiple infirmities” and doesn’t include documentary evidence of intent to manipulate any market, according to the company.

Beginning on trade date Aug. 22, ICE Futures U.S. said it will list several new financial natural gas and power futures contracts for trading, subject to completing necessary regulatory processes. For natural gas, ICE will list Katy Basis Future, Katy Index Future, Katy Swing Future, Tennessee 800L Index Future and Tennessee 800L Swing Future. For power, ICE is adding CAISO Malin Day-Ahead Peak Daily Fixed Price Future.

August natural gas is set to open 5 cents higher Tuesday morning at $2.75 as traders focus on a continuing dynamic of supply contraction and weather forecasts remain supportive. Overnight oil markets bounded higher.

BP plc has been fined $20.16 million and ordered to disgorge another $207,169 by FERC after the agency found affiliates of the company had gamed the market for natural gas at the Houston Ship Channel (HSC) in 2008 after Hurricane Ike, a decision the London-based supermajor says it will continue to challenge.

Henry Hub natural gas spot prices reached a nine-month high in June, according to the Energy Information Administration (EIA), which bumped its forecast for 2016 prices up to $2.36/MMBtu, with 2017 prices expected to average $2.95/MMBtu.

Global natural gas demand is becoming increasingly bearish, as Europe’s needs are diminished and oversupply is looming, potentially putting the kibosh on U.S. exporters gaining a lot of global share.