Natural Gas Prices

Several months ago it was hard to find a global liquefied natural gas (LNG) buyer that had anything nice to say about oil-indexation of LNG contracts. With oil prices having plummeted, one might think buyers would be big fans of oil indexation, but it's more complicated than that.

Cash natural gas prices for Thursday delivery scooted higher Wednesday as traders in eastern and Midwest markets adjusted to a cooler change in the weather regime that is likely to last to the end of the month.

The U.S. Supreme Court has upheld a Ninth Circuit ruling that took a narrow view of the jurisdiction of FERC under the Natural Gas Act (NGA), affirming state jurisdiction over retail natural gas sales.

Physical natural gas prices for Wednesday delivery firmed in Tuesday's trading as gains of a nickel or more were posted in the Gulf Coast, Midwest, Midcontinent, Rockies and California.

Gas for Tuesday physical delivery showed wide variations in price with eastern and western points showing gains, but locations in the country's mid-section taking declines. Overall the market was 4 cents to $2.34, but double digit gains in New England and the East along with additions of a couple of pennies to Rockies and California points were able to offset declines of a dime or so in the Gulf.

Declines in U.S. oilfield rig activity will likely continue through May before improving during the second half of this year, analysts at Raymond James & Associates Inc. said in an April 13 note on the U.S. rig count, in which they admitted surprise at how far and how fast the count has fallen to date.

Natural gas for weekend and Monday delivery on balance fell nominally in Friday trading as double-digit declines at eastern points were unable to offset broader gains in the Gulf, Midcontinent and Midwest.

Natural gas futures retreated after the release of government inventory figures showing an increase somewhat greater than what traders were expecting.

Natural gas for delivery Friday drifted lower in Thursday's trading with Midwest and Gulf points a few cents either side of unchanged, eastern points down about a dime, and the Rockies and California off about 3 cents. Overall the market gave up 3 cents to $2.31.