Caution

It was difficult for traders to draw any useful conclusions about market direction Tuesday as the April contract expired. For the moment an atmosphere of caution permeates the bullish camp as traders look for Monday’s highs to be breached before making additional buys. At the end of the day April had shed 13.4 cents to $4.240 and May lost 18.5 cents to $4.263. April crude oil rose 81 cents to $104.79/bbl.

Exploration and production (E&P) company insiders have a “profound sense of near-term caution” for 2009 and now expect natural gas and oil prices to average roughly 20% lower than Wall Street expectations, according to an informal survey by Raymond James & Associates Inc.

Exploration and production (E&P) company insiders have a “profound sense of near-term caution” for 2009 and now expect natural gas and oil prices to average roughly 20% lower than Wall Street expectations, according to an informal survey by Raymond James & Associates Inc.

April natural gas futures threw caution to the wind and jumped higher in active trading Thursday, building on Wednesday’s formidable rally. April futures Thursday rose 16 cents to $7.320, and the May contract added 17 cents to $7.435. May crude oil futures vaulted $2.08 to $61.69/bbl.

Although two major Southwestern utilities caution that the talks are in the very early stages, a city-run combination natural gas and electricity utility in Mesa, AZ is driving full speed ahead in seeking to partner or trade customers with the two biggest suppliers in its area.

Although two major Southwestern utilities caution that the talks are in the very early stages, a city-run combination natural gas and electricity utility in Mesa, AZ is driving full speed ahead in seeking to partner or trade customers with the two biggest suppliers in its area.

NorthWestern Corp., the holding company for a Montana combination utility, may have trouble continuing as viable business depending on the outcome of its ongoing Chapter 11 bankruptcy proceeding, according to the company’s 10-Q Securities and Exchange Commission filing earlier this month.

A study released last week by Santa Monica, CA-based Rand Science and Technology raised a caution flag for California becoming overly reliant on natural gas-fired electric generation, which it said could add to the risk of more volatile and rising gas prices. Assuming under current plans that the state’s natural gas use could double by 2010, the report advocates a “balanced portfolio” approach to the state’s future energy planning that will minimize risks of supply/price volatility.

A study released Wednesday by Santa Monica, CA-based Rand Science and Technology raised a caution flag for California becoming overly reliant on natural gas-fired electric generation, which it said could add to the risk of more volatile and rising gas prices. Assuming under current plans that the state’s natural gas use could double by 2010, the report advocates a “balanced portfolio” approach to the state’s future energy planning that will minimize risks of supply/price volatility.