Combo

Breaking off another piece of its prized exploration and production (E&P) business, Dominion on Tuesday agreed to sell its Canadian properties to a combo of Calgary-based energy trusts, Paramount Energy Trust and Baytex Energy Trust, for US$583 million.

Drawing support from a bit of post-winter chill lingering across the northern tier of states and moderate increases in air conditioning in parts of the southern tier, cash prices recorded mild advances at the great majority of points Wednesday.

A solid majority of close to 100 energy leaders meeting behind closed doors in Houston Monday endorsed the proposition that a competing mixture of financial, journalistic and academic institutions and FERC should collect energy price data, while Commission Chairman Pat Wood, acknowledged that current price indexes appear to function well.

A solid majority of close to 100 energy leaders meeting behind closed doors in Houston Monday endorsed the proposition that a competing mixture of financial, journalistic and academic institutions and FERC should collect energy price data, while Commission Chairman Pat Wood, acknowledged that current price indexes appear to function well.

The third time was a charm yesterday for bulls in the natural gas pit. After slipping lower Tuesday and Wednesday after two straight higher opens, gas futures added to early gains Thursday as traders rallied amid bullish weather news and technical factors. Gains were almost uniform across the front months, with summer strip advancing 24.3 cents to close at $5.502. The May contract, meanwhile, was 24 cents stronger at $5.422.

Amid mild weather forecasts and on the heels of another in astring of relatively small storage withdrawals, natural gas futuresprices tumbled lower yesterday as traders continued to liquidatelong positions. The selling was seen in two distinct surges —first on the open as traders increased their activity as pricesdipped to new 3-month lows and then again shortly after the releaseof fresh storage news, when the prompt March contract free-fell 15cents lower from 2:00 to 2:05 p.m. (EST). The March contract closedat $5.146, down 13.2 cents for the session.

Few can deny that the two biggest factors influencing prices inthe volatile natural gas futures arena are storage and weather.Accordingly, a combination of record cold temperatures andlarger-than-expected storage withdrawals through November andDecember caused natural gas prices to more than double, leavingregulators stunned and sending buyer to the poor house. And whileit is doubtful that natural gas prices will return the ol’two-dollar days anytime soon, the futures market did take solid ahit yesterday and yes, storage and weather were to blame.

Positioning itself to become a top tier national energymarketing and trading merchant, Allegheny Energy Inc. announcedyesterday it will acquire Global Energy Markets (GEM), the energycommodity marketing and trading arm of Merrill Lynch & Co.Subsidiary Allegheny Energy Supply LLC will pay $490 million andgive its new partner a 2% equity interest. In turn, Merrill Lynchwill refer clients to its partner.

Fueled by a record-setting storage withdrawal released yesterdayand revised outlooks by both private and governmental weatherforecasters, natural gas futures rocketed higher yesterday toeasily notch new all-time highs.