NGI Mexico GPI

The new administration at Mexico’s state-owned utility Comisión Federal de Electricidad (CFE) announced the creation of several new internal units, further demonstration of a push to reorganize the company’s structure following changes implemented by the country’s 2014 energy reform.

Natural gas futures bulls hoping for a strong finish for the October contract on its last day of trading Thursday had those hopes dashed by a very bearish surprise from the latest government storage report. After trading as low as $2.390/MMBtu, the October Nymex contract rolled off the board at $2.428, down 7.4 cents. The November contract lost 7.5 cents to settle at $2.443.

Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following question-and-answer (Q&A) column as part of a regular interview series with experts in the Mexican natural gas market.

Natural gas futures traders seemed to be keeping their powder dry Wednesday as they looked ahead to both a new round of government inventory data and the front-month expiration. After trading as high as $2.519/MMBtu and as low as $2.455, the October contract, set to expire Thursday, eventually settled close to even at $2.502, off a tenth of a penny. November settled 0.7 cents lower at $2.518.

Natural gas marketers in Mexico transacted a record high volume of 8.07 Bcf/d in August, according to the IPGN monthly gas price index published by the Comisión Reguladora de Energía (CRE).

Natural gas futures couldn’t hold onto early gains Tuesday as traders weighed near-term hot temperatures against the prospect of weaker heating demand heading into next month. After trading as high as $2.590/MMBtu in the early-morning hours, the October contract steadily declined over the course of the day, eventually settling at $2.503, off 2.4 cents. November slid 3.0 cents to settle at $2.525.

Central America and the Caribbean could see growth in natural gas demand expand as environmental policies are enacted and as Argentina’s exports ramp up.

The natural gas futures market marked the official start of fall with a quiet trading session Monday; a key support level held as traders mulled the prospect of large injections in the weeks ahead. The October Nymex contract settled at $2.527/MMBtu, down 0.7 cents after probing as low as $2.493 in the early-morning hours, while November finished unchanged at $2.555.

Mexican President Andrés Manuel López Obrador on Tuesday reaffirmed his opposition to the liberalization of the country’s energy sector, and his skepticism about the effectiveness of oil and gas bid rounds.