Natural Gas Prices

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.

It's too early for natural gas lovers to gloat, but judging by the latest Baker Hughes Inc. rig count from Friday, the dry stuff could be making a bit of a comeback…

Weekend and Monday natural gas went begging in Friday trading as temperature forecasts remained moderate, making it less attractive for buyers to commit to three-day deals.

Natural gas for delivery Friday eased in Thursday's trading as traders generally elected to get deals done before the mid-morning release of government storage data.

Natural gas futures gave ground after the release of government inventory figures showing an increase that was only slightly greater than what traders were expecting.

Natural gas sellers could face antitrust lawsuits stemming from alleged past price manipulation in the Enron era that the U.S. Supreme Court said Monday is now open to state legal action (see Daily GPI, April 21). But the initial reaction in the industry is unclear on what action at the state level is likely to unfold.

May natural gas is set to open 3 cents higher Wednesday morning at $2.60 as analysts adjust their 2015 price forecasts lower but see longer term prices over $1 higher. Overnight oil markets were mixed.