Band

Trading within a 13-cent band on Wednesday, natural gas futures traders basically confirmed that the walls are basically closing in with regard to the ever-tightening trading range of the past few months. June natural gas on Wednesday ended up closing on the day’s high of $7.890, up 2.6 cents from Tuesday.

Between now and November 2008, natural gas prices are expected to remain within a $5-10 band, according to Pace Global Energy Services. However, developments in the power and gas sectors suggest excursions from that trend could range from a low of $2.50 to a high of $20/MMBtu, said Art Holland, Pace director of power and forecasting. Such wide travel in prices is quite unlikely but possible, he said.

Between now and November 2008, natural gas prices are expected to remain within a $5-10 band, according to Pace Global Energy Services. However, developments in the power and gas sectors suggest excursions from that trend could range from a low of $2.50 to a high of $20/MMBtu, said Art Holland, Pace director of power and forecasting. Such wide travel in prices is quite unlikely but possible, he said.

With summer and the expectation of hotter weather only days away, California regulators last week took several tiny steps aimed at squeezing more megawatts into the supply mix this summer and shoring up financially troubled Southern California Edison Co., the utility hovering on the edge of bankruptcy despite all the good news being spread around by state officials this week.

While the Yukon and Alaska claimed the lead, Canada’s NorthwestTerritories remained far from forfeiting as action heated up onboth sides of the international rivalry to be first to takeadvantage of surging natural gas markets with Arctic supplies.

No one is satisfied much by the California legislature’s11th-hour move late Wednesday to pass two new laws aimed atproviding relief for San Diego electric consumers and their utilitydistribution company, San Diego Gas & Electric. Nevertheless,the governor was expected to sign the measures.

For the second day in a row Thursday, natural gas futures dippedand rallied within a wide trading band. But in contrast toWednesday’s late price falloff, trading yesterday featured ashort-covering rally before the close that lifted the Januarycontract to its $1.959 settlement price.