Natural Gas Futures Market News and Commentary
Feb Nymex natural gas (NGG20) on Friday closed down by -0.033 (-1.71%).
Feb nat-gas prices on Friday closed lower but remained above Tuesday's 3-3/4 year low. Forecasts for warmer-than-normal U.S. temperatures continued to pressure nat-gas prices. The Commodity Weather Group on Friday said temperatures will be well above normal across most of the lower 48 U.S. states through Feb 2 and that the greatest intensity of warmth will be in the northern states, which are the biggest consumers of nat-gas. A warm start to the U.S. winter has reduced heating demand for nat-gas and elevated nat-gas inventories since December was the seventh warmest December in the post-1950 historical record.
Another bearish factor for nat-gas prices is the March/April 2020 futures spread that fell to a record low Tuesday of -0.045, the most negative that spread has been since it started trading in 2016. The March/April futures spread on Friday closed at -0.038 and has finished in negative territo... Read more