In a reflection of Wednesday afternoon’s meager storagewithdrawal report and the accompanying screen downturn, most cashpoints fell between about a dime and 20 cents Thursday. The majorvariations from the overall market were Northern Californiaupticks, flat to barely lower numbers in the Rockies and San JuanBasin, and a Southern California border decline of nearly 40 cents.
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Storage and Technicals Pave Way for Futures Declines
Spurred by a negative short-term technical outlook and coming onthe heels of bearish storage data, natural gas futures retracedlower Wednesday as traders took back gains notched during Tuesday’sprice rally. At the closing bell, April was off 24.6 cents tofinish at $5.041, 2.2 cents below Monday’s close.
Futures Close Strongly After AGA-Related Dip
Except for an hour of storage data-induced volatility from 2p.m. (EST) to 3 p.m. (EST), natural gas futures were quietyesterday as traders were reluctant to pressure prices outside therecent trading range. At the closing bell, April prices were 3.5cents stronger at $5.35.
Futures Rise and Fall on Storage Data
Buoyed by stronger cash market values and bullish speculationahead of the latest AGA storage report, natural gas futures clawedtheir way off early morning lows yesterday as buyers added to theirsummer long positions. However, that buying pressure was all fornaught because prices came cascading back down late in the session,leaving the April contract with a 4.3-cent loss for the day. Theprompt month settled at $5.236.
El Paso Merchant Ordered to Relinquish Protected Data
FERC last week ordered El Paso Merchant Energy and El PasoMerchant Energy-Gas L.P. to stop stonewalling and turn overprotected materials to parties involved in a complaint case thatalleges the affiliates received preferential treatment when theyacquired 1.2 Bcf/d of California-bound firm capacity on El PasoNatural Gas.
El Paso Merchant Ordered to Relinquish Protected Data
FERC last week ordered El Paso Merchant Energy and El PasoMerchant Energy-Gas L.P. to stop stonewalling and turn overprotected materials to parties involved in a complaint case thatalleges the affiliates received preferential treatment when theyacquired 1.2 Bcf/d of California-bound firm capacity on El PasoNatural Gas.
El Paso Merchant Ordered to Relinquish Data
FERC yesterday ordered El Paso Merchant Energy to stopstonewalling and turn over protected materials to parties involvedin a complaint case in which it’s alleged the affiliate receivedpreferential treatment when it acquired 1.2 Bcf/d of firm capacityon El Paso Natural Gas.
Industry Brief
Canadian 88 Energy Corp. said it has opened data rooms to allowpotential acquirers access to confidential information. TheCanadian exploration and production company put itself up for salein October after Duke Energy rescued it by buying a controllingstake. On Oct. 10, the company announced that its board hadestablished a special committee to review strategic alternativesand identify opportunities to enhance shareholder value. The boardsaid strong fundamentals for high quality natural gas assets andprospects are not reflected in current stock price valuations andare more likely to be realized through such a strategic reviewprocess. Canadian 88 stated several reasons for initiating thereview process, including high gas prices, large working interestsin significant company-operated gas fields, an inventory ofexcellent gas exploration prospects, the world class potential ofthe company’s East Coast holdings, imminent expiration of currentgas hedges and tax pools in excess of $400 million.
Gas Production Making Small Gains
Now that most of the production data for the third quarter isin, analysts generally are saying they “told you so” because U.S.gas production is barely making desperately needed gains.Production is, however, growing slightly more than expected, andsome observers see huge gains to be made next year.
Gas Production Making Small Gains
Now that most of the production data for the third quarter isin, analysts generally are saying they “told you so” because U.S.gas production is barely making desperately needed gains.Production is, however, growing slightly more than expected andsome observers see huge production gains to be made next year.