NGI Data

Perhaps it was the overall trend of falling bidweek prices or maybe the expected arrival of warmer temperatures following a brutally cold and extended winter…

Physical natural gas prices continued Monday's decline in Tuesday's trading as forecasts of warming trends provided little to no incentive to make purchases on the next-day market. A few points in Appalachia and the Marcellus, along with some isolated Rockies locations were able to escape the price cleaver, but otherwise the selling was broad and pervasive.

Spot gas prices for Tuesday delivery moved higher in Monday's trading as weather-induced strength in the Plains, along with strong performances at eastern, Northeast and Marcellus points, was able to offset broad weakness elsewhere. At the close of futures trading, May was down by 11.4 cents to $4.371 and June had fallen 11.5 cents to $4.404. May crude oil retreated 9 cents to $101.58/bbl.

Natural gas futures traders on Friday were taking a second look at Thursday's bullish exuberance, and it appears the conclusion they reached was that the move was overdone.

Even though spring has officially begun, chilly temps for much of the country led physical natural gas prices to move higher for the five trading days ending March 28. NGI's National spot gas average increased by 16 cents to average $4.76, with individual point bumps ranging from a couple of pennies at Gulf Coast locations to more than a dollar at a few Northeast sites.

Physical gas prices fell again in Thursday trading for Friday delivery, but most of the hard selling occurred in the Northeast where some points suffered multi-dollar drubbings.

Spot gas prices for Thursday delivery continued the volatility shown in Tuesday's trading and took a big hit primarily in Midwest, Northeast and East market areas as temperatures were forecast to rise sharply before receding. Overall, next-day prices on Wednesday were down, and only a handful of points escaped the pervasive red ink. At the close of futures trading, April shed 0.9 cent to $4.402 and May was off 1.9 cents to $4.395. May crude oil jumped $1.07 to $100.26/bbl.

Physical gas for Wednesday delivery strengthened in Tuesday's trading as broad gains at most locations combined with outsized advances at eastern and New England points were able to offset losses in the Midcontinent.

Apparently Ol' Man Winter hasn't checked the calendar recently, and while the 2013-2014 winter is technically history, you wouldn't know it from some of the weather forecasts. Spot gas for delivery Tuesday posted a broad advance nationally with few points finding themselves in the loss column. Gains ranged from a few pennies in the Gulf and Rockies to double-digit advances at Great Lakes points to multiple dollar weather-driven gains in New England and the East.