Markets

Natural gas forwards markets fell an average of 13 cents for April as market players brushed off a surprise storage report and remained fixated on forecasts showing mild conditions over much of the country during the next two weeks, according to NGI’s Forward Look.

It was a tale of two markets in Monday trading for Tuesday physical natural gas deliveries, but sharp losses at eastern points were unable to overcome broad gains at most other market points.

April natural gas is set to open 2 cents lower Friday morning at $1.62 as traders see a soft weather outlook and no indication of production restraint as leading prices lower. Overnight oil markets rose.

Frustratingly low commodities prices continued to exert their force as 2015 wound down, with a majority of the companies participating in NGI’s 4Q2015 Top North American Gas Marketers Ranking reporting lower sales transaction numbers than they did in 4Q2014.

California energy officials are reviewing a draft long-term natural gas outlook released last November and reassessing their assumptions following the shutdown of the state’s largest gas storage facility due to a recently sealed well leak.

Physical natural gas prices for weekend and Monday delivery beat a hasty retreat in Friday’s trading as buyers saw little need to commit to three-day deals and weather forecasts for the coming week continued to moderate.

April natural gas is set to open 4 cents lower Thursday morning at $1.64 as weather models are in greater agreement on forecast warm patterns and traders hone short-term trading algorithms in preparation for the release of government storage figures. Overnight oil markets fell.

Based on repair progress, Rockies Express Pipeline (REX) said it is lifting a Tuesday force majeure effective for the evening cycle of Thursday’s gas day (March 3). The event affected most receipt points in the pipeline’s Zone 3 (see Daily GPI,March 2a;March 2b).

Natural gas futures moved little Thursday morning after the Energy Information Administration (EIA) reported a storage withdrawal that was somewhat greater than what traders were expecting.