Search for bottom continuing for natural gas futures Wednesday as prices down sharply through morning and lunchtime trading
March Nymex contract off 8.0 cents to $1.609/MMBtu as of 2:28 p.m. ET; $1.61 seen as “strong technical support,” according to EBW Analytics Group’s Eli Rubin
Nymex front month trading at roughly 10-cent premium to day-ahead Henry Hub price of $1.510, according to NGI’s Midday Price Alert
Market searching for signs of a production response as major natural gas operators report earnings
Including hedges, EQT Corp. estimating Nymex Henry Hub free cash flow breakeven of around $2.20/MMBtu in 2024, per 4Q2023 results
Gelber & Associates: “Given EQT’s status as the largest natural gas producer in the Lower 48, that breakeven price could serve broadly as a good baseline for understanding at what point producers are incentivized to moderate output, especially those outside the Permian”
Haynesville Shale pure-play Comstock Resources Inc. dropping from seven to five rigs in response to weak prices, reports NGI’s Andrew Baker
Haynesville rig count down three for week ended Feb. 9, Marcellus and Utica shales down a combined five rigs: Enverus
Spot prices mostly lower, per Midday Price Alert, with National Avg. off 24.0 cents to $1.655; Northeast Regional Avg. plummets $1.560 to $2.600
Following Nor’easter impacting Mid-Atlantic and Northeast, National Weather Service expecting “much more tranquil weather” for these areas the next few days
Jeremiah Shelor joined NGI in 2015 after covering business and politics for The Exponent Telegram in Clarksburg, WV. He holds a Master of Fine Arts in Literary Nonfiction from West Virginia University and a Bachelor of Arts in English from Virginia Tech.
October Nymex natural gas futures floated from gains to losses during Tuesday afternoon trading. The market was caught between prospects of significant demand destruction and production shut-ins as Tropical Storm Helene formed over the Caribbean. Cash prices were mixed by varied demand.
October Nymex natural gas futures surged through early afternoon Monday, bolstered by the potential for production disruptions later this week, with another storm brewing in the tropics.
Natural gas futures rocketed through midday trade Friday in a volatile session that saw the contract sink as low as $2.314/MMBtu and rise as high as $2.440. Changes in supply and demand fundamentals drove wide swings.
Bulls took control of the market Thursday afternoon after October Nymex natural gas futures briefly tumbled to an intraday low at $2.223/MMBtu following a reported storage build of 58 Bcf for the week ended Sept. 13.
Another attempt by market bulls to pull October Nymex natural gas futures higher ran into a wall Wednesday afternoon as bears resumed control. The market had a muted response to the Federal Reserve’s (Fed) interest rate cut decision while moving lower on weaker demand.
After rising to the highest level since July, natural gas futures drifted into the negative in afternoon trade on Tuesday as the market searched for fundamental support to hold onto gains.
