Post Tagged with: "natural gas price"

Source: CNBC

Natural gas is one of the few trades that hasn’t worked on Wall Street, down 50% in 12 months

CNBC Pretty much every trade has worked on Wall Street this year except one: natural gas. Futures prices fell to a one-month low on Friday after plunging more than 12% for the week. The commodity is currently trading around $2.34 per million British thermal units, which is nearly 50% below where it traded a year earlier. It’s down 21% for 2019. Excess supply is pressuring prices. Inventory built up last spring following a warmer-than-expected winter, and U.S. production has climbed to a record high, according to data from the U.S. Energy Information Administration. A milder fall season is also having an impact on prices. According to Credit Suisse, temperatures since September have been 4% warmer than they were last year, although they are 20% below the 5-year average.   Bespoke Weather chief meteorologist Brian Lovern said that since the middle of the summer the weather has been bullish, but that the excess[Read More…]

December 3, 2019 - 1:00 pm Closing Bell Story, Energy News, Natural Gas News
Natural Gas Prices Lose Steam

Natural Gas Prices Lose Steam

Natural gas gives up gains on unseasonably warm weather and inventory build Natural gas prices continued to decline today following news that more gas went into storage this week, expanding the market glut. The Energy Information Administration reported that natural gas stockpiles increased 73 Bcf in the week ended October 21, 2016, exactly in-line with economist expectations. The price of natural gas has slowly been declining for the last eight days after breaking above $3.00 per MMBtu in October. Natural gas prices remain about 42% higher now than a low of $1.90 per MMBtu in April, but are about 18% lower than where they stood on October 12. Prices were behaving bullishly early this month as Baker Hughes reported the number of rigs drilling for natural gas had decreased by approximately half, and associated gas production was down dramatically as well with fewer active rigs in oil producing regions of[Read More…]

Source: WPX

Natural Gas Pricing and Marcellus Differentials

Discount to Henry Hub has Narrowed The spread between natural gas prices at Henry Hub and pricing in the hubs around the Marcellus has been indicative of the supply glut and the status of infrastructure in the area. Henry Hub in Louisiana acts as the main trading point for natural gas in the U.S., but natural gas from the Utica shale plays in Pennsylvania, West Virginia, and Ohio consistently trade lower than the national benchmark. Natural gas produced from the Marcellus and Utica is often transported to other areas of the country for consumption. With limited infrastructure to carry out transportation mandates, natural gas supply can quickly build. This can cause prices within the Marcellus region to be discounted. Conversely, the price of natural gas in the North East can increase with an upswing in demand that outpaces the capabilities of the supply routes. During a cold winter when demand[Read More…]