Traders Re-Think Demand Destruction; Weekly NatGas Up Nearly A Dime

During the previous week traders were all abuzz about lost demand and its impact on prices as the NGI Weekly Spot Gas Average for the week ended Sept. 8 fell a nickel to $2.55. By the time this week’s trading got underway, however, traders realized that demand destruction might have been a little overblown, at least from a market perspective. That and forecasts of warmer weather prompted a turnaround, and for the week ended Sept. 15, the NGI Weekly Spot Gas Average rose 8 cents to $2.63.

NatGas Price Bulls Take A Modest Hit In Weekly Trading

There was both good news and bad news for the bulls in weekly physical natural gas trading during the week ended August 4. The bad news was that the market still continued to deteriorate with the NGI Weekly National Spot Gas Average losing 4 cents to $2.62, but the good news is that it fell far less than the previous week’s pounding, which took the market down 22 cents to $2.66.

Weekly NatGas Gains Follow Prior Week Futures Advance

True to form, the near 30-cent advance in the November futures for the week ended Oct. 7 augured higher weekly cash prices the following week. For the week ended Oct. 14, the NGI National Weekly Spot Gas Index gained a healthy 16 cents to $2.67, but in an environment of “what have you done for me lately,” traders will be watching to see if the futures advance of 9.2 cents for the week ended Oct. 14 will lift weekly cash quotes again.

Trading Places: Weekly NatGas Cash Up Nearly A Dime, But Futures Languish

The week’s natural gas trading was something of a role reversal from the week before with the physical market adding close to a dime, but spot futures eking out an advance of less than a penny. Last week natgas cash added a modest 2 cents to $2.63, but the futures raced higher by 15.1 cents to $2.948. For the week ending Sept. 23 the NGI Weekly Spot Gas Average rose 9 cents to $2.72, and October futures added a mere seven-tenths of a cent to $2.955 after briefly trading over $3.

Weekly NatGas Continues ‘On The Road To Recovery’

Weekly natural gas trading for the week ending Sept. 9 continued the trend of the prior two weeks with modest, single-digit gains. The NGI Weekly Spot Gas Average rose 6 cents to $2.61, and the week’s market points with the greatest gains and losses belonged to our neighbors to the North. Gas at Westcoast Station No. 2 soared $C1.31 to $C1.86/Gj and gas at Empress shed $C0.41 to $C2.53/Gj.

Wide Swings Characterize Weekly NatGas Trading

For the short trading week of Aug. 31 to Sept. 2, natural gas prices traded high and low with regional double-digit gains and double-digit losses spread across the trading landscape. After the smoke had cleared, though, the NGI Weekly National Spot Gas Average couldn’t even match the previous week’s modest 4-cent gain to $2.55, as the Weekly Average was unchanged.