Bounded

The physical market bounded sharply higher Tuesday, prompted by a strong screen and low inventories at some points. Nearly all points recorded double-digit gains. At the close of futures trading, October had added 18.0 cents to $2.992 and November had climbed 16.3 cents to $3.104. October crude oil gained 63 cents to $97.17/bbl.

Cash market quotes bounded higher Tuesday even though traders saw little in the way of increased loads or fundamental changes in the market. Average gains at all points were more than 16 cents and Northeast points were the softest but they advanced over a dime.

Physical natural gas prices Tuesday bounded higher, led by expectations of significant drops in temperatures and stout power prices. Futures headed south as traders factored in expectations of storage data expected to swell the surplus still further. March slumped 7.8 cents to $2.472 and April skidded 11.0 cents to $2.628. March crude oil rose $1.50 to $98.41/bbl.

The North Dakota Industrial Commission on Tuesday approved a 30,000-acre single oil production unit in an area bounded by a state park and river in the west-central part of the state. The vote was unanimous to allow the atypically large production unit, which is intended to better protect the environment, a commission spokesperson told NGI’s Shale Daily.

Despite the release of a storage withdrawal that was inline with expectations, April natural gas futures bounded higher Thursday, seemingly on continued strength in the petroleum complex. April natural gas rose 21.9 cents to $10.230, and the May contract rose 22.8 cents to finish at $10.306. April crude oil rose 41 cents to $110.33 after trading as high as $111.00, another record.

December natural gas futures bounded higher in active trading Thursday in spite of inventory data that placed supplies at record levels. The Energy Information Administration (EIA) reported working-gas supplies rose a hefty 66 Bcf, well above the mid 50 Bcf expected by the industry.