Corralled

The combination of softer crude oil prices and forecasts calling for moderating temperatures were enough to keep the bulls corralled Monday as the natural gas market eased from Friday’s 30-month highs. Monday’s price softness led September futures to a low of $9.38, but buyers stepped in and the contract closed for the day at $9.54, down 4.8 cents for the session.

Breaking out of the extremely-tight, 4-cent trading range that corralled prices for much of the session, natural gas futures moved lower Wednesday afternoon on the heels of a disappointing (for bull traders) announcement that only 124 Bcf was pulled from storage last week. The selling pressure was felt immediately after the 2 p.m. EST release and by 2:30 p.m. February had sunk to a new, life-of-contract low at $2.04. A slight up-tick at the closing bell lifted the prompt month to a $2.076 settle, down 3 cents for the session.

Following a three-day, 25-cent price spike, the natural gasmarket cooled its heels Thursday as traders took profits amidtechnically overbought conditions and ahead of the weekend. After alate morning push failed to surpass Wednesday’s $2.78 high, sellerscame out of the woodwork to deliver the March contract a dime lowerto $2.659.

The futures market was poised to trade higher yesterday onmomentum gained from a string of advances dating back to lastThursday, but revised forecasts calling for seasonable temperaturesand a lack of technical direction took the wind out of bull-tradersails, allowing the market to slip lower. For the second day in arow, changes were more pronounced in the December contract than theprompt month. November slid 2.2 cents lower to settle at $2.18, butDecember lost 2.8 cents to $2.455.