Modest weakness at eastern points was not enough Wednesday to thwart an otherwise strong physical natural gas market. Next-day gas was firm at all locations outside the Northeast, with most points adding anywhere from a nickel to a dime. The NGI National Spot Gas Average rose 4 cents to $2.70 with gains in California, the Rockies, and the Gulf offsetting Marcellus weakness.
May natural gas is expected to open 2 cents higher Thursday morning at $1.93 as traders juggle a mix of short-term cooler weather along with a government report that is expected to show storage reaching an all-time high on a seasonal basis. Overnight oil markets were mixed.
It was a tale of two physical markets Wednesday as Thursday gas traded sharply lower at Rockies and California points, but in the Northeast next-day deliveries added about a dime on a firm power market. NGI's National Spot Gas Average fell 13 cents to $2.32 and futures prices weakened as well.
Natural gas cash prices Tuesday for Wednesday delivery were uninspired except for in the Northeast, where some points flirted with $2 gains as forecasts turned cooler and power prices surged. February futures gained 8.2 cents to $3.455 and March was higher by 7.5 cents to $3.453. February crude oil fell 86 cents to $93.28/bbl.
Physical natural gas for Wednesday delivery moved little as near-term temperature forecasts remained benign and little movement was seen in futures trading.