NGI Data

Physical gas for weekend and Monday delivery continued the trend of lower prices in Friday’s trading. Mild weather in the Northeast prompted double-digit declines, but prices in the Midwest and Midcontinent moved less drastically.

Red ink spilled far and wide in weekly physical natural gas trading as the low-demand characteristics tied to the shoulder season were more than evident. All actively traded points followed byNGIshowed losses ranging from just over a dime to as much as 90 cents. For the week ended May 16 theNGIWeekly Spot Gas Average nationally fell 28 cents to $4.27.

Spot gas for Friday delivery continued to work lower in Thursday’s trading as mild weather and a soft power environment pressured prices. Traders also made sure they got their deals done ahead of the release of Energy Information Administration (EIA) storage data.

Physical gas for Wednesday delivery weakened in Tuesday trading with eastern points taking hits of 25 cents or more. Only a few scattered points managed to trade in positive territory, and for the most part, locations were down by anywhere from a couple of pennies to a dime or more. On average the market was off nearly a dime.

Physical natural gas traded Monday for Tuesday delivery was widely mixed with prices swinging as much as 25 cents above or below unchanged. New England points suffered the indignity of having temperatures swing from summer-like conditions to well below normal within the space of 24 hours, and Chicago also saw a 15 degree drop from “summer” to normal within a day’s time period as well.

Physical gas for weekend and Monday delivery swan-dived in Friday’s trading as traders saw little incentive to purchase gas for what forecasters were calling mild weekend weather. Marcellus points took the hardest fall, aided by the well-known supply glut in the region, but New England, California, and the Midwest were right behind.

Buyers seeking to replenish thin working gas inventories got something of a break for the week ended May 9. Nearly all market points recorded losses and the NGI National Weekly Spot Gas Average finished 8 cents lower at $4.55. A slightly bearish inventory report may augur a changed storage/refill outlook.

June natural gas is expected to open unchanged Friday morning at $4.57 as Thursday’s decline reset a number of trading parameters and upward progression is likely to depend on weather assistance. Overnight oil markets rose.

June natural gas is set to open 2 cents lower Thursday morning at $4.72 as traders hone their short-term trading algorithms ahead of a government storage report expected to show an increase about inline with the five-year average. Overnight oil markets were lower.