Wild Swings Keep Weekly NatGas Traders Busy

For just a four-day trading week there was enough activity to keep traders busy well into October. The NGI Weekly Spot Gas Average gave up the prior week’s 14-cent gain to $2.77 and slipped 16 cents to $2.61 for the week ended Sept. 28, but things got really crazy early in the week when first-ever negative pricing was observed at congested Canadian points.

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.