Confined

Hot weather wasn’t much of a factor in Wednesday’s market as forecast peaks in the mid 90s or higher remain confined to parts of South Texas, the desert Southwest and inland California. Otherwise moderate to cool or chilly conditions dominate the rest of the North American outlook.

May natural gas was again confined to a narrow 6-cent trading range and eased slightly in options-dominated trading Tuesday.

May natural gas futures rose Tuesday as traders saw the market trading in concert with other energy futures but noted that it was still confined to a trading range. At the close May natural gas was up 12.4 cents to $4.262 and June had gained 12.0 cents to $4.310. May crude oil partially recovered from Monday’s $2.54 drubbing and added $1.03 to $108.15/bbl.

April futures were confined to a narrow range Friday but managed to eke out a modest gain. The massive earthquake in Japan found its way into crude oil and natural gas trading, and the unwinding of long crude oil and short natural gas positions prompted a firm tone to the market.

But stability should be long term, and volatility will be confined to relatively short-lived bursts.

The U.S. natural gas rig count slowly has begun to rebound after bottoming in June, but the increased exploration has been confined to a few key areas, according to data reviewed by energy analysts. Activity planned by the oilfield service operators in North America will be a key indicator in the coming year, they said.

Italian producer Eni, which up to now has kept its U.S. exploration efforts confined to the Gulf of Mexico (GOM) and Alaska, has formed a strategic alliance with Quicksilver Resources Inc. to acquire, develop and exploit some of Quicksilver’s Barnett Shale leasehold.

Italian producer Eni, which up to now has kept its U.S. exploration efforts confined to the Gulf of Mexico (GOM) and Alaska, has formed a strategic alliance with Quicksilver Resources Inc. to acquire, develop and exploit some of Quicksilver’s Barnett Shale leasehold.

Between February and April, the northern two-thirds of the United States should expect warmer-than-normal temperatures, with below-normal temperatures confined to the South, according to a seasonal outlook issued last week by WSI Corp.