Bank

Looking ahead to the second half of next year, analysts at Bank of America Merrill Lynch see the potential for some gas price recovery. However, the cash market will remain weak for the near term and volatility will be high, they wrote in a recent research note.

As the U.S. House moved toward debate and a possible vote this week on financial market reform, including moving a large part of over-the-counter (OTC) derivatives trading onto exchanges, oil and gas producers warned that unless language excluding commercial traders from compulsory clearing is retained, it “would cost the energy industry alone tens of billions of dollars.”

Natural gas prices through the end of September are expected to average $3.80/MMBtu, while prices in the fourth quarter will average $5, energy analysts with Bank of America-Merrill Lynch (BA-ML) said in a note to clients. However, if gas storage levels continue to climb, analysts said Henry Hub prices could dip below $3.

Natural gas prices through the end of September are expected to average $3.80/MMBtu, while prices in the fourth quarter will average $5, energy analysts with Bank of America-Merrill Lynch (BA-ML) said in a note to clients. However, if gas storage levels continue to climb, analysts said Henry Hub prices could dip below $3.

FERC Monday approved a second extension of a temporary waiver of the agency’s capacity-release rules so remaining issues related to Barclays Bank PLC’s acquisition of UBS’ natural gas trading portfolio can be addressed.

A recent downgrade of Wachovia Bank NA won’t affect the rating and outlook on a Northern California city’s prepaid natural gas supply deal that is similar to other long-term supply arrangements that public-sector electric utilities in the state have signed in the past two years. Roseville Natural Gas Financing Authority keeps its “A” rating and stable outlook on $209.4 million in 2007A bonds, according to Standard & Poor’s Ratings Services (S&P).

Given the U.S. government’s stress test assessment that Bank of America (BofA) needs a multi-billion-dollar capital infusion, Standard & Poor’s Ratings Services (S&P) on Wednesday adopted a “negative” credit watch for some of the high-profile public-sector utility long-term natural gas purchases. The gas prepayment deals have been under credit rating downward pressures for the past year (see Daily GPI, Sept. 17, 2008).

The pending combination of the downstream natural gas unit of Constellation Energy with the operations of Australian investment bank Macquarie Group’s Macquarie Cook Energy could create a gas marketer with about 17 Bcf/d of volume, according to company and NGI figures.

The pending combination of the downstream natural gas unit of Constellation Energy with the operations of Australian investment bank Macquarie Group’s Macquarie Cook Energy could create a gas marketer with about 17 Bcf/d of volume, according to company and NGI figures.