While convinced the oil price is a bubble ready to burst at any time, Canadians see a firm floor holding up under natural gas — and not least because it is a struggle to maintain their contribution to the North American “continental market.” Consensus forecasts north of the border draw a sharp contrast between the oil and gas markets.
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Statistics Canada: Record Gas Directed Drilling Puts Canadian Production on Rise Again
A burst of drilling, described as nothing short of heroic by regional standards, has arrested the two-year-old decline in Canadian natural gas supplies at least for now. Production grew by 2% during the first third of this year to about 17.3 Bcf/d compared to 17 Bcf/d from January through April of 2003, according to records kept by Statistics Canada.
Statistics Canada: Record Gas Directed Drilling Puts Canadian Production on Rise Again
A burst of drilling, described as nothing short of heroic by regional standards, has arrested the two-year-old decline in Canadian natural gas supplies at least for now. Production grew by 2% during the first third of this year to about 17.3 Bcf/d compared to 17 Bcf/d from January through April of 2003, according to records kept by Statistics Canada.
Weekend Price Dive Shows Up as Scheduled
The dam burst on an already weakening cash market Friday. Following a record-high storage injection report and the screen’s plunge of just over 60 cents in response Thursday, nobody was surprised to see weekend numbers fall by anywhere from 40 cents to nearly 80 cents. Declines ranging from a little less than half a dollar to 60 cents dominated the market.
Tropical Storm Fails to Avert Overall Price Softness
Not even a burst of activity in what has so far been a quiet 2002 Atlantic hurricane season was able to support prices Monday. Except for mild upticks in California and the holiday-limited intra-Alberta market, along with a smidgen of flatness in the Northeast, most points fell between about a nickel and 30 cents. The larger declines tended to cluster in the Rockies, but Transco Zone 6-New York City continued to descend from last week’s stratospheric heights with a plunge of more than 40 cents to land it back in place with other Northeast quotes in the $3.20s.
November Crosses Key Resistance, Moves Up 10 Cents
November Henry Hub futures burst through the 40-day movingaverage at the open yesterday and never really looked back. Aftercrossing $2.859, speculative fund buyers jumped in, sending thecontract 10.2 cents higher for the day to $2.927/MMBtu. Decembergained 10.7 cents, settling at $3.120. January jumped 9.9 cents to$3.130, and February moved up 7.2 cents to $2.945.
Bearish Fundamentals Catch Up to Nymex Prices
The dam supporting natural gas futures prices finally burstThursday. After successfully fighting back numerous attempts tofall below major support at $2.11 the last several weeks, the JuneNymex contract succumbed to major selling by funds yesterday, andsettled the day down 10.2 cents to $2.067. Volume was extremelyheavy, with an estimated 93,072 contracts changing hands.