Natural Gas Prices

Most physical traders on Thursday made a point of getting their deals done prior to the release of weekly natural gas storage data from the Energy Information Administration. Overall, the market for Friday gas gained a penny to $2.36.

There was a noticeable lack of bullishness, just straight talk on the prospects for natural gas in transportation by a panel of experts at last week's IHS CERAWeek in Houston.

The first quarter of her tenure at FERC was a busy one highlighted by a few big issues, according to Commissioner Colette Honorable, who heard "loud and clear" from the natural gas industry on the most controversial of those issues — a proposal to move the 9 a.m. Central Clock Time (CCT) start of the gas day to 4 a.m. CCT.

With slumping oil and stagnant natural gas prices, the market for merger and acquisition (M&A) activity among exploration and production companies would appear to be a good bet. However, many of the biggest companies with the deepest pockets are remaining on the sidelines.

Skyrocketing wintertime Northeast gas prices are a pipeline problem and not due to a paucity of regional natural gas supply, a lawmaker from Maine told U.S. Energy Secretary Ernest Moniz, speculating on potential additional supplies if the Maritimes & Northeast Pipeline (M&NE) is reversed to tap the Marcellus.

Physical natural gas for Thursday delivery gained ground in Wednesday's trading with higher quotes in the Gulf, Midwest, Midcontinent, Rockies and California equalling lower readings in New England. The overall market was unchanged at an average of $2.35.

Natural gas for delivery Wednesday was mixed in Tuesday's trading. A few points posted losses, but by and large gains of a few pennies were widespread. Overall, the market added 4 cents to $2.35, with broad gains in New England, the Gulf Coast, Midwest and California able to offset weakness in the Mid-Atlantic and Marcellus.

Traders in the natural gas forward market eyeing May, June and the remainder of the summer strip don’t seem to be expecting much in the way of surprises. Some obvious considerations seem to be the degree to which reductions in industry capital expenditures will reduce production, the usual hurricane forecasts and the weather in general.

Physical natural gas slipped lower in Monday's trading for Tuesday deliveries as traders find themselves staring down the barrel of a near-term market environment that may feature a series of triple-digit additions to storage and elimination of the year-on-five-year storage deficit.