Natural Gas Market Updates

A couple pieces of supply-related news today. First, the Albertan NOVA pipeline system has restricted delivery to the Northwest for export. The restriction is expected to last for about a week, starting today. The excess gas on the market will probably be bearish for AECO spot prices. Second, Freeport LNG experienced a power outage yesterday…

A very warm afternoon here in Toronto. Looks like Freeport LNG experienced a power outage this morning. Volumes flowing to Freeport sharply reduced today (just over 4,000 Mcf were flowing as of noon, well below the >1,400,000 Mcf which flows during normal operations), and no volume is expected to flow tomorrow. As a result, that…

Welcome back for another week. NYMEX prices drifted up and down today, but ultimately settled a few cents down. Heating demand has really come off, to the point now where heating and cooling degree days are nearly balanced in the US. Some nice and toasty temperatures coming up! Canadian production has recovered from last week’s…

On the whole, production in the lower 48 and Canada has been down from the record highs set earlier this spring. With mild temperatures though, there’s not as heavy a need for heating, but utilities are going to want to fill storage the best that they can this season. Demand will certainly not vanish in…

After being delayed for a few hours, the storage report for the week ending April 25 came in as an injection of a whopping +107 Bcf, much more than the expected +89 Bcf. Taking a look at the EIA’s chart of working gas in the lower 48’s storage, injection season appears to be well underway.…

Here in Toronto, the trees are starting to grow some leaves, and the days are feeling warmer. April is wrapping up, and Canada’s forecast for early to mid May is currently predicting above normal temperatures. There is still some residential and commercial demand for gas though, but is expected to slide with the warmer temperatures,…

Welcome to the June front month contract in the NYMEX. Carrying on from yesterday’s big rally, June settled up 4 cents to close at $3.30 US/mm. Like we said yesterday, it has been a relentless sell-off this past month so it’s only natural that the market catches a break. It’s looking quite warm in NOAA’s…

Happy Monday What looked at first to be a boring day turnout out to be a big rally. Today is expiry day for the NYMEX May contract and June is the front month.  May expired at $3.182 US/mm, up 24.5 cents. The June contract was bouncing around a bit today: opened at $3.14us/mm overnight, started…

Happy Friday A quiet day, which was a nice change from the recent volatility.  The NYMEX MAY front month was down 11% for the week.  May will expire on Monday and the June contract will become the front month. June looked like it wanted to rally early this morning but then settled down to unchanged on…

Happy Storage Day The EIA storage report for the week ending April 18th showed a net injection of +88bcf as compared to an average estimate of +64 Bcf.  The highest estimate I saw was +81 so this is a solid beat.  Utilities are not waiting to shove gas into storage.  The average injection for this week…

We are almost through April and approaching May. Not much activity in the market today, NYMEX prices drifted around some but settled only a cent or two up from where it opened. The May front month settled at $3.022 US/mm. The combination of tariff anxiety and warming weather resulted in some pretty significant moves in…

Temperatures keep warming up. NOAA’s temperature outlook is showing a high likelihood of above normal temperatures in late April, and lately the ECMEN forecast keeps turning warmer each day. The US is nearly at “perfect temperatures” where heating and cooling demand will be nearly zero. As such, be ready for Utilities to begin putting gas…