Coming

With a parade of storms coming off the coast of Africa at a frenetic pace, one theory is that natural gas futures traders — much like they did the previous Friday — took to covering their short positions ahead of the weekend to limit their risk (see Daily GPI, Sept. 7). However, another leading idea is that futures have hit a seasonal bottom and are ready to explore higher prices.

With no guidance coming from Tuesday’s neutral screen action, cash market traders were left to their own devices on Wednesday. Some Midwest averages and almost all western averages continued Tuesday’s run higher with additions of a few pennies to a little more than 15 cents, while the rest of the country saw small pullbacks of up to a nickel.

Coming off a new low for the move of $4.182 on Monday, September natural gas futures recorded a low of $4.186 on Tuesday before rebounding to close at $4.267, up 3.9 cents from the previous day’s finish.

September natural gas futures values plumbed lower prices on Wednesday before coming rebounding to close the regular session at $4.326, up 2.9 cents from Tuesday’s finish. The price action occurred as Tropical Depression 5 became disorganized and dissipated in the northern Gulf of Mexico as it headed northwest toward the southeastern Louisiana coast.

Coming off Monday’s 22.2-cent decline in September natural gas futures, traders on Tuesday tested the upside a second consecutive day with similar results. After reaching a high of $4.825, the front-month contract backed off once again, closing the regular session at $4.639, down 6.2 cents from Monday’s finish.

Chesapeake Energy Corp. will be a natural gas-weighted producer for the foreseeable future, but in the coming years expect to see an evolution to liquids-rich plays, the company said this week.

Spooked by the potential of coming in Monday to a full-blown hurricane churning in the Gulf of Mexico, natural gas futures traders on Friday pushed the July contract to a high of $4.893 before the contract closed the regular session at $4.861, up 11.3 cents from Thursday’s finish but 13.6 cents below the previous week’s close.

After tripling over the last 10 years, natural gas use by Alberta thermal oilsands production will nearly double again in the coming decade, predicts the province’s Energy Resources Conservation Board (ERCB).

After tripling over the last 10 years, natural gas use by Alberta thermal oilsands production will nearly double again in the coming decade, predicts the province’s Energy Resources Conservation Board (ERCB).