Provident Energy Consulting

NYMEX March Gas Nudges Slightly Higher in Trading Tuesday


The NYMEX March natural gas futures contract ticked up Tuesday, with the March contract settling at $2.662/MMBtu, up just 0.2 cent from Monday’s settle.

The slight upward movement for the March contract snapped a
streak of four consecutive sessions in which the contract fell.
The March contract fell 24.3 cents over the previous four trading
sessions, with demand in the US tumbling from record highs seen
last week.
Tuesday’s upside could be partly due to cooler forecasts for the US,
with the most recent six- to 10-day and eight- to 14-day outlooks from
the US National Weather Service calling for below-average temperatures for the the western US and a majority of the Upper Midwest.
S&P Global Platts Analytics projects total US demand, including
exports to Mexico and LNG feedgas requirements, will average 102.5
Bcf/d over the next 14 days, compared with a 99 Bcf/d average in the
same period in 2018.
Further down the curve, prices also rose, with the April and May
contracts climbing 0.8 cent and 0.9 cent, respectively.
The NYMEX strip for April 2019 through October 2019 averages $2.74/
MMBtu, the lowest level for the April-October period in three years.
The weakness of that strip compared with previous years could
be the result of increased production in the US. US dry gas
production has averaged 84.6 Bcf/d so far in 2019, compared with a
77.6 Bcf/d average during the same period in 2018, and a 72.2 Bcf/d
average in that period in 2017.

Source: Platts 2019

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