Bearish

Bearish indicators for oil prices and robust natural gas production inform a lower 2008-2010 gas price outlook held by Stephen Smith Energy Associates. For this year the group is forecasting a $9.30/MMBtu average Henry Hub price, down from a previous estimate of $9.47/MMBtu.

Bearish indicators for oil prices and robust natural gas production inform a lower 2008-2010 gas price outlook held by Stephen Smith Energy Associates. For this year the group is forecasting a $9.30/MMBtu average Henry Hub price, down from a previous estimate of $9.47/MMBtu.

Cash prices were taking on a considerably more bearish tone Tuesday, with most points experiencing sizeable declines. The demand destruction from Hurricane Ike, along with generally mild to cool weather outside the interior West, was proving to have more influence on the market than the Gulf of Mexico shut-ins, which still totaled more than 6 Bcf/d.

Marginalizing the bearish damage done on Thursday, traders — after bouncing off of support just below $11.500 in the overnight session — pushed natural gas futures 22.9 cents higher on Friday to close at $11.703. The week, which saw June futures expire at $11.916 on Wednesday, also saw the July contract close 27.8 cents lower than the previous Friday’s finish.

A spreading revival of enthusiasm for Arctic natural gas prospects has lured an elder statesman of the Canadian resource hunt out of retirement to broadcast reminders of bearish lessons learned the hard way during the last burst of polar drilling.

A spreading revival of enthusiasm for Arctic natural gas prospects has lured an elder statesman of the Canadian resource hunt out of retirement to broadcast reminders of bearish lessons learned the hard way during the last burst of polar drilling.

Despite missing the mark with an earlier bearish projection, analysts at Raymond James & Associates Inc. are sticking to their fretful view of summer gas prices based on the strength of production growth from unconventional basins and “an anticipated uptick in summer LNG [liquefied natural gas] imports.”

Despite missing the mark with an earlier bearish projection, analysts at Raymond James & Associates Inc. are sticking to their fretful view of summer gas prices based on the strength of production growth from unconventional basins and “an anticipated uptick in summer LNG [liquefied natural gas] imports.”

If Mexico’s natural gas production continues to inch upward, it may play a “modestly bearish” role in the U.S. gas equation in 2008, according to energy analysts with Raymond James & Associates Inc.