Markets

February natural gas is set to open 4 cents lower Wednesday morning at $2.33 as traders consolidate positions following two days of double-digit advances and also assess the longer-term supply outlook. Overnight oil markets retreated.

The expiring January contract is called 9 cents higher Tuesday morning at $2.32 as traders square books before the end of January trading and weather forecasts ratchet cooler. Overnight oil markets were mixed.

Physical natural gas for Wednesday delivery continued the ascent established in Monday’s trading as weather forecasts continued to turn still colder and the expired January futures contract as well as the rest of the curve provided strong financial support for buyers to make incremental purchases.

January natural gas is expected to open 8 cents higher Monday morning at $2.11 as the parade of unseasonably warm weather forecasts has abated and market technicians see a case for a market bottom. Overnight oil markets fell.

Natural gas forwards rose substantially for the period between Dec. 18 and 23 as declining production and the potential for much stronger demand resuscitated the markets after weeks of steady declines, NGI’s Forward Look shows.

Physical natural gas prices Monday leapfrogged higher as a combination of weather forecasts calling for more seasonal conditions, a strong screen and a soon-to-expire January contract prompted double-digit gains across the board.

Natural gas for delivery over the extended holiday period posted gains in Thursday’s trading as strong weather-driven gains in the Rockies and California were able to outperform softer points more aligned with the Henry Hub.

Royal Dutch Shell plc has reduced its global capital spending by $2 billion to $33 billion in 2016 to deal with low commodity prices and prepare for the pending takeover of BG Group plc. It also slashed the value of the BG merger, first announced last April, by $17 billion.

Lawsuits, investigations and public invectives were mounting in California Wednesday against Sempra Energy’s Southern California Gas Co. (SoCalGas) over a two-month-old natural gas underground storage well leak and the resulting impact on a suburban Los Angeles community.