Nat Gas News – January 24, 2017

Click here to read the latest NGN

In the News

The days of cheap natural gas are over

Forbes reports: Natural gas prices averaged a little more than $2.50 per mmbtu (million British Thermal Units) in 2016. Those days are over. Prices willaverage at least $3.50 to $4.00 in 2017. Prices have more than doubled since March 2016 but gas is still under-valued. Supply is tight because demand and exports have grown and shale gas production has declined. In April of last year, I wrote that natural gas prices should double and they did. Henry Hub spot prices increased 2 1/2 times from $1.49 to $3.70 per mmbtu and NYMEX futures prices doubled from $1.64 to $3.30 per mmbtu. Nevertheless, gas prices are still too low. Storage was at record high levels throughout 2016 reaching 4.1 Bcf (billion cubic feet) and 84% of working capacity in mid-December. Storage has fallen 1.1 Bcf in the last month to 61% of capacity. That is below the 5-year average. For more visit forbes.com or click http://bit.ly/2kb12Zg

Natural gas prices rebound in today’s trading

Economic Calendar reports: Natural gas prices rebounded today, with the contract for February settlement on the New York Mercantile Exchange closing today’s pit session $0.04 higher, up 1.3%, at $3.25/MMBtu. Upcoming cold weather appears to be behind today’s advance, as well as the contract’s current oversold condition. According to natgasweather.com, a colder system will sweep across the central and eastern US late this week, ending the current mild spell as natural gas demand surges to near or slightly stronger than normal levels due to much of the US finally dropping below freezing besides the far southern US. Despite today’s bounce, however, the overall bias in natural gas remains to the downside, as open interest was not supportive during the rally from the January low. Thus, the move is vulnerable to a complete retracement as it appears to have been driven largely by shortcovering. For more on this story visit economiccalendar.com or click http://bit.ly/2jjYl9C

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Make a Call

We are happy to discuss your business challenges over the phone and answer any questions.

800.695.6626

Send Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote