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.
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.
There was plenty of market activity to keep bidweek traders busy as they put October deals to bed, but outside of Appalachia, the Rocky Mountains and California, bidweek quotes showed only nominal declines of a few pennies. The NGI October National Bidweek Average fell 10 cents to $2.54 from September Bidweek, and represents a mere 3-cent premium over the NGI October 2016 National Bidweek Average of $2.51.
Physical natural gas for Wednesday delivery moved little as near-term temperature forecasts remained benign and little movement was seen in futures trading.
In contrast to recent range-bound action, natural gas futures added close to a dime Tuesday as forecasters noted hotter medium-range weather trends that could keep current storage deficits from shrinking as quickly as previously thought. In the spot market, prices strengthened across the Midwest and Texas with hot weather on the way, while points in the West pulled back; the NGI National Spot Gas Average added 4 cents to $2.44/MMBtu.