Updated Sep 25, 2024
9/25/24
Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following column by Eduardo Prud’homme as part of a regular series on understanding this process.
Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following column by Eduardo Prud’homme as part of a regular series on understanding this process.
Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following column by Eduardo Prud’homme as part of a regular series on understanding this process.
NGI has for nearly 40 years now covered the evolution of North American natural gas. From deregulation and the rise of a highly competitive market, to the collapse of Enron Corp. and the dawn of unconventional development, the organization has adapted and pressed ahead to what’s next.
The cash market Wednesday staged a broad rally of 15 cents with only a half-dozen points falling into the loss column as Old Man Winter refused to let go even with the first day of spring only a week away.
The overall cash market advanced another 6 cents on average with only a minority of points in the loss column and some locations sporting double-digit gains. Rockies and northern California points were strong as well as the Gulf Coast and the Midcontinent. Much to the delight of market technicians, futures put in a new high, and at the close November was 3.0 cents higher at $3.617 and December had added 4.3 cents to $3.947. November crude oil followed slumping equity markets and dropped $2.05 to $90.05/bbl.
Bolstered by Tuesday's 9.5-cent gain in October futures, cash market averages across most of the country remained in the plus column for the third straight day Wednesday with a vast majority of points adding less than a dime. The recent stretch of price strength has market watchers scratching their heads for answers.
May natural gas futures opened higher Monday but quickly tumbled nearly 20 cents to land solidly in the loss column, as falling oil markets were able to tug natural gas lower. At the close May was off by 6.6 cents to $4.138 and June had declined 7.4 cents to $4.190. May crude oil swan-dived $2.54 to $107.12/bbl.
May natural gas futures drifted lower Friday as traders noted little in the way of buying as prices completed the sixth day in a row in the loss column and traders shifted their interest to the petroleum complex. At the end of the day May had fallen 1.6 cents to $4.041 and June shed 1.9 cents to $4.107. May crude oil rocketed higher by $2.49 to $112.79/bbl.