Articles tagged SoCal Border Avg.

Unable to gain traction, September Nymex natural gas futures saw early Wednesday gains ebbed away in favor of modest losses as tides were turning on fundamentals with lingering weather support expected to drift away into the fall shoulder season.

September Nymex natural gas futures careened lower Friday as the market focused on milder weather forecasts over an improved pace of storage tightening signaled by the latest inventory report.

With production strong and supplies in storage stout, a mixed demand outlook was not enough to further propel natural gas futures. Global information technology outages also created upheaval as trading commenced on Friday.

Natural gas futures, battered by hefty supply concerns most of this month, reversed course and powered forward on Thursday after an anemic government inventory report.

Natural gas futures reversed early gains in an apparent shrugging off of the impacts of former Hurricane Beryl as the market focused instead on revised weather outlooks that erased cooling degree days (CDD), even as excessive heat is expected to grip large portions of the country.

August natural gas futures were on track to decline for a sixth straight session through midday trading Tuesday, undercut by cooler weather forecasts and weaker cash prices.

Forecasts for near-record cooling demand in the month ahead failed to propel natural gas futures forward on Friday, as export volumes were in question and production held at strong levels.

• Nymex futures heading for negative session on return from three-day weekend amid weak heating demand outlook through early March
• March Nymex contract off 3.2 cents to $1.577/MMBtu as of 2:35 p.m. ET; steeper losses observed for 2024 injection season contracts
• Euro model seeing highs of 40s and 50s for Midwest and Northeast next week, according to NatGasWeather
• NGI modeling 65 Bcf storage pull for week ended Feb. 16, versus 168 five-year average withdrawal
• Production at 104.0 Bcf/d in latest Wood Mackenzie estimates, lower versus recent seven-day average 104.8 Bcf/d
• Per EBW Analytics Group’s Eli Rubin: “Glimmers of hope due to weekend natural gas production down 0.5-1.0 Bcf/d may provide fundamental cover for technical support to yield a short-term bottom”
• Mild weather also driving bearish fundamentals for gas markets in Europe and Asia, according to Rystad Energy’s Lu Ming Pang
• Cash prices mixed, with National Avg. easing 1.5 cents to $1.560, NGI’s Midday Price Alert shows
• Multiple force majeure notices posted by El Paso Natural Gas (EPNG), impacts on flows through points in Arizona and Texas: Wood Mackenzie
• Spot prices rallying west of EPNG constraints, with SoCal Border Avg. surging 43.0 cents to $2.135; upstream, W. TX/SE NM Regional Avg. clobbered, down 30.5 cents, according to Midday Alert

Surging production and new takeaway capacity paved a path for record-high natural gas supplies flowing from the prolific Permian Basin.