Bullish

Choosing to respond to renewed strength in the U.S. dollar instead of a bullish natural gas storage injection report of only 12 Bcf, December natural gas futures sank back below the $7 mark in Thursday morning trade. Thursday ended up bringing the contract’s streak of higher closes to an end at four as December futures finished at $6.979, down 27 cents from Wednesday’s close.

Riding the bullish momentum that was introduced Tuesday, November natural gas futures roared higher on expiration Wednesday, putting in a high of $6.580 before going off the board at $6.469, up 28.3 cents from Tuesday’s close. Picking up the mantle as front-month contract, December futures added 36.2 cents on the day to finish at $6.778.

After September natural gas futures gained barely more than a dime on Monday, bullish traders were unable to produce any follow-through momentum on Tuesday as the front-month contract reached a high of $8.479 before ultimately closing out the day’s regular session at $8.330, down 1.9 cents from Monday’s finish.

Two “bullish surprises” arrived this fall: a bit colder than expected temperatures and an “extremely” low level of liquefied natural gas (LNG) imports, which together suggests that Henry Hub prices in early 2008 may inch higher than a year ago.

Two “bullish surprises” arrived this fall: a bit colder than expected temperatures and an “extremely” low level of liquefied natural gas (LNG) imports, which together suggests that Henry Hub prices for the first quarter of 2008 may be higher than a year ago.

Raymond James & Associates Inc. affirmed recent private and government forecasts that U.S. natural gas production is indeed on the rise, but the ever-bullish energy analyst said last week that the growth’s long-term sustainability is “unlikely.”

Raymond James & Associates Inc. affirmed recent private and government forecasts that U.S. natural gas production is indeed on the rise, but the ever-bullish energy analyst said the growth’s long-term sustainability is “unlikely.”

The normally bullish energy team with Raymond James & Associates Inc. Monday said U.S. natural gas prices may rally toward the end of this year, but plentiful supplies and an overabundance of storage could lead to a “disaster” in 2008.

September natural gas futures drifted lower as formerly supportive fundamental weather factors started to lose some of their bullish luster Friday. The September contract fell 1.6 cents to settle at $6.090 and the October contract skidded 2.4 cents to $6.292. Floor traders noted a fundamentally soft tone to the market.