Cooler

Fueled by forecasts calling for cooler temperatures throughoutmuch of the country later this week, natural gas futures probedhigher in two distinct buying surges yesterday. The first push cameshortly after Monday’s lower open, when traders bid the Januarycontract to $2.50. However, those gains were erased almost entirelyby early afternoon, intra-day profit taking. But the bulls were notfinished, and after digging in their heels at $2.47, weresuccessful in pushing prices through $2.50 late in the session. TheJanuary contract finished up 6.3 at $2.509.

Fueled by forecasts calling for cooler weather next week,natural gas futures rumbled higher yesterday as traders cashed inon newly established short positions. After opening above keyresistance at $2.36, the January contract moved sideways for mostof the session before erupting higher at the closing bell. TheJanuary contract finished just a fraction of a penny off its dailyhigh, up 8.9 cents to $2.393.

The current storage surplus and expected “normal” temperaturesthis summer (14% cooler than last summer) will continue to put adamper on spot prices until the fourth quarter of this year, theEnergy Information Administration predicted last week in itsShort-Term Energy Outlook. The EIA said wellhead prices shouldremain below $2/Mcf until November.

The current storage surplus and expected “normal” temperaturesthis summer (14% cooler than last summer) will continue to put adamper on spot prices until the fourth quarter of this year, theEnergy Information Administration predicted yesterday in itsShort-Term Energy Outlook. The EIA said wellhead prices shouldremain below $2/Mcf until November.

For the second week in a row, cooler temperatures and spikingcash prices piqued the attention of buyers Monday, prompting shortcovering amid some fresh buying. That enabled the prompt Januarycontract to gap higher on the open, and quickly move to majorresistance at $2.00. But the buying dried up and January was tradedmostly sideways before ticking down at the final bell. Januaryfinished at $1.952, up 9.4 cents for the day.