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Natural gas futures finished lower last week with the selling pressure driven by a mild weather pattern, a weak response to the second largest storage draw on record and lower spot market prices. The focus now shifts to the start of meteorological spring on March 1 and whether end-of-March storage winds up at or above 1.6 Tcf.
Total inventories will start the new month down to 1.8 Tcf, but warmer temperatures are expected to weigh on demand so storage draws could undoubtedly be weak.
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Mobius Risk Group analysts said, “Regardless of how warm March is, the odds of finishing the withdrawal season anywhere close to 2 Tcf are essentially nonexistent, while the risk of falling sub 1.5 Tcf are at least 60% if not greater.”
Weather models continue to warmStorage seen ending March well below 2 TcfCash prices rebound as brief cold front set to hit Lower 48 Price action in the
Price action in the Nymex natural gas futures market on Friday was about as thrilling as watching paint dry. After sideways action throughout much of the
Steep Natural Gas Price Losses Leave Forwards ‘Significantly Undervalued’
Massive declines spread across natural gas forward markets for the trading period ending Wednesday, fueled primarily by a return to the warm weather pattern that has characterized most of the winter season.
A quick ramp in production following last week’s historic winter storm also served as a headwind for prices, with March averaging 34.0 cents lower during the Feb. 18-24 period, according to
April contracts also took a big hit, falling 19.0 cents on average for the period, while the summer strip (April-October) dropped 13.0 cents on average,
Forward Look data showed. Prices for next winter (November-March) posted double-digit losses as well, averaging 10.0 cents lower on the week.
Like ‘Nothing Happened,’ Natural Gas Forward Prices Crumble Below $3.00
Massive declines spread across natural gas forward markets for the trading period ending Wednesday, fueled primarily by a return to the warm weather pattern that has characterized most of the winter season.
A quick ramp in production following last week’s historic winter storm also served as a headwind for prices, with March averaging 34.0 cents lower during the Feb. 18-24 period, according to
April contracts also took a big hit, falling 19.0 cents on average for the period, while the summer strip (April-October) dropped 13.0 cents on average,
Forward Look data showed. Prices for next winter (November-March) posted double-digit losses as well, averaging 10.0 cents lower on the week.