Bull

Natural gas prices remained on a roller coaster ride of volatility yesterday as bull traders used the latest storage data as a battering ram to propel prices higher in the last 30 minutes of trading. The December contract received the biggest buying boost, posting a 10.8-cent gain at $3.291. The 12-month strip lagged only slightly, advancing 8.4 cents to close at $3.383.

In a topsy-turvy session that left both bull and bear searching for answers, natural gas futures slipped lower Thursday as traders took profits following Wednesday’s shocking storage news and resultant 37.4-cent advance. At the closing bell yesterday, the September contract was 10.1 cents lower at $3.367.

In a session that had a little for both bull and bear, natural gas futures spiraled higher early Thursday only to crash lower late in the day as traders were finally successful breaking beneath support. In doing so the prompt contract slipped 5.9 cents lower to close at $4.054.

Tuesdays have been a natural gas bull’s savior as of late. Making it three in a row, futures rebounded yesterday as traders once again were in a buying mood ahead of Wednesday’s weekly storage report. Fighting against a gap lower open and a quick move down to $4.05, buyers stepped up their efforts mid-morning and watched as prices bubbled higher throughout much of the rest of the session. Although small, the one-cent advance leading to yesterday’s $4.123 closing price was claimed as a victory by bulls who have found little to like about this market thus far in 2001.

What do you get when you mix a bull market near its all-timehigh with a potential tropical storm and a large storage refill? Ifyou answered one heck of a 24-hour trading period then you were notalone yesterday as natural gas futures traders experienced atrading day that saw four distinct buying surges and onegut-wrenching sell-off.

Southern California border quotes for swing gas peaked just shyof $7 Monday amid rising prices throughout the general market.Increases at non-border points ranged from about a nickel to 20cents, with most in the vicinity of a dime; however, the PG&Ecitygate went up a little more than 40 cents to around $5.90.

Still a little hung over from Wednesday’s 24-cent bull-party,natural gas traders elected to cool their heels yesterday, leavingthe market to quietly check to either side of unchanged. The Junecontract finished at $3.71, up 2.1 cents on the day.

Despite the gas futures rally that pushed May prices to contracthighs of $3.087 last Thursday, Susannah Hardesty, president ofEnergy Research and Trading, still expects a higher spike nextmonth, possibly to $3.30 for the near-month contract, asnervousness over strong summer gas and power demand reaches thetrauma stage.

There was a strong bull rally in gas futures yesterday. Afterbusting through and settling above the $3 barrier on Wednesday, Maysurged 6.6 cents higher to a new high of $3.087, a couple centsfrom its daily high of $3.105 and a greater distance from its$3.045 low for the day. The summer strip closed up 6.8 cents at anew high of $3.11, and the 12-month strip set a new high at $3.116.