Amid

Continued Nymex upticks Friday following Thursday’s energy futures spikes proved strong enough to offset generally mild weather forecasts and rally weekend cash prices at nearly all points.

Price declines in most of the market were fairly modest Friday considering the extra demand loss of a holiday weekend and the trends of moderating weather that were expected to keep temperatures mild in the eastern two-thirds of the U.S. this week. The West even saw gains in California and other points outside the Southwest basins as Rockies supply constraints became a concern.

Adding to Monday’s 20-cent decline, the September natural gas futures contract continued lower Tuesday amid a mixed bag of fundamental and technical market clues. But while bears were quick to claim the 4.5-cent loss and $5.038 settle in September futures as a victory, bulls took solace in the market’s ability to hold above $5.00 and believe that level of support could be a springboard to higher levels Wednesday. At 89,466, estimated volume was heavy for the session.

It wasn’t for a lack of trying, but in the end there was nothing bulls could do to keep natural gas futures prices from free-falling lower Monday. The combination of mild temperature forecasts, negative technical factors, and the continuation of an unimpressive tropical storm season was enough to place bears back at the market’s helm. September futures closed at $4.630, down 24.4 cents or 5% for the session.

As a result of contract protection received from the bankruptcy court, Mirant Corp. reported last week that many of its electricity and natural gas customers were continuing to make deliveries without interruption. But customers were feeling the effects of the bankruptcy in other ways. Potomac Energy Power Co. (Pepco), a key power customer in the Mid-Atlantic region, had its long-term corporate credit rating put on CreditWatch in the wake of Mirant’s bankruptcy filing.

Amid concerns that Mirant may be likely to file for Chapter 11 bankruptcy protection if it cannot extend its near- and intermediate-term debt maturities, Standard & Poor’s Ratings Services (S&P) last week lowered the Atlanta-based energy supplier’s ratings to “CC” from “CCC.” Mirant has about $9.7 billion in debt, including lease-related debt.

Amid concerns that Mirant may be likely to file for Chapter 11 bankruptcy protection if cannot extend its near- and intermediate-term debt maturities, Standard & Poor’s Ratings Services (S&P) on Monday lowered the Atlanta-based energy supplier’s ratings to “CC” from “CCC.” Mirant has about $9.7 billion in debt, including lease-related debt.

A great majority of the cash market ranged from flat to nearly 20 cents higher Monday as traders watched a skyrocketing screen and heard a great deal of talk about nuclear plant outages. But CIG, Cheyenne Hub and Questar led Rockies/San Juan Basin declines sparked largely by a major one-day constraint on Rockies gas moving eastward and also by light weather load.

After initially ducking lower to equal Monday’s $5.16 low, the June natural gas futures contract struggled higher in featureless trading on its first session as prompt contract Tuesday. It closed at $5.236, up 4.6 cents for the session and 7.6 cents off its early low. Estimated volume was light, with 69,391 contracts changing hands.