US Midwest natural gas prices have tumbled from year-earlier levels and may remain mired at those lower levels after a mild winter left regional gas inventories at an eight-year high.
The good news for gas buyers is that weekly prices worked another 18 cents lower to $3.72 according to the NGI Weekly Spot Gas National Average for the week ended July 25. The bad news is that for unhedged physical market longs the pace of weekly declines is accelerating. For the week ended July 18 the market fell 11 cents to a national average of $3.90.
Wednesday physical natural gas trading for Thursday delivery saw widespread weakness of a few pennies at most spots around the country offset by significant strength in California and New England, where colder temperatures were beginning to set in.