To take advantage of falling service costs and the expectation of higher natural gas prices, Calgary-based junior Compton Petroleum Corp. has set a course to triple its gas-directed drilling in the Western Canadian Sedimentary Basin for the rest of the year.
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Calgary’s Compton Bets on Higher Gas Prices Going Forward
To take advantage of falling service costs and the expectation of higher natural gas prices, Calgary-based junior Compton Petroleum Corp. has set a course to triple its gas-directed drilling in the Western Canadian Sedimentary Basin for the rest of the year.
August Futures Rebound Nearly 30 Cents on Short-Covering
Traders reversed course in a big way Tuesday as August natural gas futures — which had fallen by $1.65 from June 15 through July 9 — sprung higher Tuesday in a fierce round of short-covering. The prompt month hit a high of $6.710 before settling at $6.699, up 28.9 cents from Monday’s close.
Futures Rebound Following Profit-Taking Tuesday
Following Tuesday’s pressure release that saw the May natural gas contract lose 24.5 cents, traders on Wednesday were able to resume their course towards higher prices despite the continued easing of tensions in the Middle East. The prompt month gained 8.9 cents Wednesday to finish at $7.515.
Slight Warm-Up Does Wonders; Nearly All Points Fall; NY Dumps $24
Despite continuing extreme cold in the Northeast, spot prices sharply reversed course Tuesday with Transco Zone 6 New York dumping more than $24 to end the day with an average slightly less than $16. Other Northeast locations were off $2-$5.75 into the $9-12 range.
Futures Jump 30 Cents on Cold Weather Expectations
After taking a breather on Thursday from the up move, natural gas futures traders resumed course on Friday, putting in a high of $6.640 before closing out the week at $6.601, up 30.9 cents on the day and 41.7 cents higher than the previous Friday’s close.
Cash Slips at Most Points Outside Rockies; Slight Cool-Down Expected
Cash prices reversed course at most locations Tuesday, slipping anywhere from a few cents to more than 20 cents, except at a number of western points that posted 10- to 26-cent gains, including Northwest Pipeline, Opal, CIG and Kern River, which reported low linepack. Trading ranges were extremely tight, coming in at 5-10 cents in many markets.
Sparse Trading Pushes Futures Below $6 Ahead of Holiday Weekend
Maintaining Thursday’s momentum, October natural gas futures punched below the psychological $6 level in overnight trading and remained there through the course of Friday’s holiday-shortened session. The prompt month put in a low of $5.820 during the quiet session before settling the week at 1 p.m. EDT at $5.877, down 17.1 cents on the day and $1.467 lower than the previous Friday’s close. The week also saw the September contract go off of the board at $6.816.
Futures Trickle Lower on Light Volume as Direction Remains Unclear
Whether or not the down-move has run its course remains to be seen as December natural gas Tuesday failed to add to Monday’s gains. After putting in a low of $11.500 and a high of $11.980, the prompt month ended up settling at $11.793, down 8 cents for the day.
Market Weakness Shows Up after Most Cash Points Make Large Daily Gains
Cash prices rose sharply Wednesday morning on the heels of the futures market but then reversed course when the entire energy futures complex suddenly plummeted. However, most cash averages showed daily net increases of 15-35 cents, with Florida, the Gulf Coast, Northeast and Midwest points posting the highest gains and with smaller gains in the West.