Weekly natural gas cash prices spiked early in the week as a winter storm system moved across the northern half of the country, dropping chilly rains on
Dissipating Cold Leads to Sharp Decreases for Weekly Natural Gas Cash
A trio of winter weather systems tracked across the Lower 48 this week, but none failed to induce enough widespread cold to boost demand in the final week of 2020.
Weekly natural gas cash market prices posted big losses across most of the country, with NGI’s Weekly Spot Gas National Avg., which covers gas traded Monday through Wednesday for delivery through Thursday, Dec. 31, tumbling 26.0 cents to $2.530.
On Wednesday, a winter storm brought snow to the northern parts of Texas, and drenching rains and ice in other areas, before heading east. AccuWeather forecasters said an area of high pressure sliding by through the Northeast on Thursday could set up a shallow layer of cold air and result in a period of freezing rain and sleet for many interior locations with this storm.
Weekly Natural Gas Prices Sink Amid Seasonally Mild Weather, Weaker Demand
In an abbreviated four-day trading week ahead of the Christmas holiday, weekly cash prices gave up ground amid mild temperatures and light heating demand across much of the Lower 48.
NGI’s Weekly Spot Gas National Avg. for the Dec. 21-24 period fell 45.5 cents to $2.790.
Comfortable conditions moved in early and hung around until mid-week across much of the central and eastern half of the United States, with highs of 30s to 50s across northern regions and 60s and 70s over southern areas.
As the trading week closed, PNGTS was down $3.145 to $5.240, while Tenn Zone 6 200L was off $4.865 to $3.640, and SoCal Border Avg. was down 50.0 cents to $3.295.
Weekly Natural Gas Prices Boosted by Winter Blast, Heating Demand
In an eventful stretch of trading influenced by a powerful winter storm that blanketed large swaths of the East with heavy snow and chilly temperatures, weekly natural gas prices soared.
NGI’s Weekly Spot Gas National Avg. for the Dec. 14-18 period spiked 79.5 cents to $3.245, led by a surge in Northeast prices that started early in the week.
A colossal storm dropped more than a foot of snow in several states over Wednesday and Thursday, impacting major markets such as Philadelphia, New York City and Boston. Winter conditions drove strong heating demand for much of the week, particularly in the Northeast, where cash prices climbed four consecutive days beginning on Monday.