Markets

Unless shale drilling activity increases meaningfully or natural gas prices spike, Pennsylvania’s 2016 impact fee collections from producers could again decline, the state’s Independent Fiscal Office (IFO) said in a report.

Natural gas for Thursday delivery was mostly lower in Wednesday’s trading as double-digit average advances at Northeast points were unable to counter broad declines in Texas, Louisiana, the Midcontinent and Midwest.

August natural gas is set to open 5 cents higher Tuesday morning at $2.77 as traders mull heat indexes that are expected to be well into triple digits by mid-week. Overnight oil markets rose.

The summer heat blanketing the central U.S. might be keeping air conditioners humming and power loads lofty, but as far as the price of next-day natural gas, not so much.

August natural gas is set to open a penny higher Monday morning at $2.77 as forecasts call for no new incursions of warmth and risk managers suggest forward sales. Overnight oil markets eased.

Total Gas & Power North America Inc.’s (TGPNA) efforts to move its defense against FERC enforcement staff allegations of three years of natural gas trading manipulation from the regulatory agency to a federal district court were hamstrung Friday when the court tossed out that request.

Natural gas forwards markets slid an average of 7 cents between July 8 and 14 as potentially record-setting heat was no match for bloated storage inventories, according to NGI’s Forward Look.

All eyes were on the thermometer Monday as traders for next-day gas laid in supplies to get them through what is forecast to be a brutal stretch of hot weather. Next-day deliveries bounded higher with the Northeast, Rockies and California taking the lead, with some gains averaging close to 40 cents.

August natural gas is expected to open 5 cents lower Friday morning at $2.68 as traders reassess the likely impact of expected hot weather along with increased production and fuel switching. Overnight oil markets rose.