Markets

California’s Department of Conservation (DOC) on Friday released preliminary draft permanent regulations covering natural gas storage facilities in the state, an outgrowth of the four-month storage well leak that was sealed in February and an emergency order from Gov. Jerry Brown resulting from the prolonged incident.

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.

Much of the shortened holiday week was characterized by only modest shifts in natural gas forwards markets, but the action coming back from the extended holiday weekend was enough to send prices down an average of 23.5 cents between July 1 and July 6, according to NGI’s Forward Look.

Physical natural gas for Tuesday delivery gained more than a dime in Monday’s trading as outsized advances in the Northeast, Rockies and California were able to easily offset losses in the Southeast and more modest gains in Texas and Louisiana. The NGI National Spot Gas Average rose by 12 cents to $2.59.

Much of the shortened holiday week was characterized by only modest shifts in natural gas forwards markets, but the action coming back from the extended holiday weekend was enough to send prices down an average of 23.5 cents between July 1 and July 6, according to NGI’s Forward Look.

August natural gas is set to open a penny lower Friday morning at $2.77 even though traders are factoring in expected higher demand over the next two weeks. Overnight oil markets rose.

Once again, physical natural gas for weekend and Monday delivery parted ways with firmer futures.

Wide regional variations characterized weekly spot natural gas trading for the shortened week ended July 8. Towering double-digit gains in the Northeast and Southeast, however, were unable to counter losses extending from Appalachia to California and the Rocky Mountains to the Gulf Coast.

August natural gas is expected to open 4 cents higher Thursday morning at $2.83 before a government report that is expected to show additions to supply far less than historical averages. Overnight oil markets rose.