Constructive

Anadarko Petroleum Corp.’s Jim Hackett, who traded the CEO chair for that of executive chairman in May, said Wednesday the country needs to have an “informed and constructive debate” on the national energy policy to ensure natural gas and oil can continue to be developed under “very strong and appropriate” environmental protections.

July natural gas on Thursday repeated its performance of a week ago and fell hard following the release of seemingly constructive inventory data. The Energy Information Administration (EIA) reported an increase of 69 Bcf in its weekly inventory report, well below historical averages, but prices suffered a double-digit loss. At the close July had fallen 16.5 cents to $4.412 and August dropped 16.1 cents to $4.450. July crude oil added 14 cents to $94.95/bbl after declining $4.56 in Wednesday’s trading.

In sympathy with firmer crude oil prices and in reaction to constructive weather forecasts, prompt month natural gas futures rebounded off early lows Monday to post a fifth-straight daily advance. The January contract gained 5.7 cents to $5.341 and the February contract notched a 6.2-cent rise to $5.297.

Bullied by revised intermediate-term weather outlooks and feeding off a delayed reaction to supportive storage data issued Thursday, natural gas futures finished the week on a positive note as prices rallied to new two-week highs Friday.

Natural gas futures continued its astonishing rally yesterday as fund and local traders used Friday’s strong close as a springboard to a gap-higher open. Bears only hope came in the form of a weak mid-morning sell-off. But when that weakness failed to fill in the chart gap down to $3.08, bulls were quick to bid the market right back up. The April contract closed at $3.305, up 22.9 cents for the session and just below the contract’s four-and-a-half-month high notched Oct. 31 at $3.32.

Following the release of some of the most price-constructive medium range weather forecasts thus far this winter, natural gas futures shuffled higher Thursday. Continued short-covering pressure was enough to promote prices to new six-week highs for the third day in a row. However, the buying was done in an orderly manner, and because it was almost evenly matched by local and commercial selling, the day’s gains were limited. The March contract settled at $2.425, up 4 cents for the session. By virtue of yesterday’s 118,144 figure, estimated volume has easily eclipsed the 100,000 mark each day this week.

Buoyed by a price-constructive intermediate-range weather forecast and stronger cash market prices, natural gas futures shuffled higher for the second-straight session Monday amid light short covering and fresh long accumulation. Although unable to sustain a move back above the $3.00 mark, bulls were impressed by the market’s ability to rebound from a late morning dip to the low $2.90s. Bears, meanwhile appear more convinced than ever that the market will continue lower. At the closing bell, the August contract was 2.3 cents stronger at $2.978.

Slightly constructive long-lead weather forecasts and animportant technical signal prompted natural gas futures to arrestdownward momentum yesterday and eke out a narrow gain in a quietsession. Many traders elected to wait on the sidelines for aclearer price picture to develop.

Spurred by constructive over-the-counter dealings, along with alittle apprehension ahead of today’s release of fresh storage data,the July contract gapped higher at the open yesterday en route toan unprecedented 15th advance in 16 trading sessions. After makinga “head fake” lower about mid-morning Tuesday, the July contractrumbled 8.6 cents higher to finish at $4.354.