January natural gas was set to open about three cents higher Wednesday at around $2.712 as the market continued searching for balance following recent selling.
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Rebalancing the global oil glut is going to take more than a temporary pullback by the world’s largest producers because U.S. unconventional production is overwhelming any shortfall and coming back faster than anticipated, the International Energy Agency said.
September natural gas is expected to open a penny higher Thursday morning at $2.67 as traders factor in ongoing warm temperatures and expected lean storage figures from a government report. Overnight oil markets rose.
June natural gas is set to open 2 cents higher Wednesday morning at $2.56 as traders hint at a short-covering rally from a deeply oversold market. Overnight oil markets slumped before the release of petroleum inventory data.
Dry natural gas production in the United States, boosted by stronger pipeline flows from the Marcellus Shale, led Goldman Sachs analysts on Monday to revise their forecasts down for prices and lift expectations for end-of-summer storage levels.
Exports of liquefied U.S. natural gas would be a boon to the country’s economy, its trade balance and its relations with friends and enemies alike, as long as the price is right (and markets will take care of that part), a U.S. House subcommittee was told by a quintet of witnesses on Thursday.
With the price of gold now down nearly 30% from its record September 2011 high of $1,920.30/oz to around $1,377, analysts looking for a commodity to be bullish about have turned their focus to natural gas as a new commodity “safe haven,” thanks to the shale revolution.
Calgary-based Talisman Energy Inc. last year cut debt by $750 million, stabilized its balance sheet and is now focused on two core areas: the Americas and the Asia-Pacific region, said CEO Hal Kvisle.
Cash prices on average skidded about another dime overall on Friday as surging prices at a couple of points in the Northeast couldn’t balance an overall weak tenor to an oversupplied market. Midwest points slipped less than a dime, but Gulf and eastern points suffered double digit losses. At the close of trading January futures had made it five straight losses in a row for the week and settled at $3.314, down 3.3 cents and February lost 3.1 cents to $3.358. January crude oil added 84 cents to $86.73.
The election may have left the balance of power in Washington basically unchanged, but the lame duck Congress, which convened this week, may turn out to be not so lame, and the outlook for natural gas interests on Capitol Hill is good, according to Regina Hopper, CEO of America’s Natural Gas Alliance (ANGA).