Direction

Seemingly unable to make up its mind about how substantive recent weather-based demand is, most of the cash market reversed direction for a third straight day Wednesday in chalking up small gains at nearly all points.

At the direction of Republican Pennsylvania Gov. Tom Corbett, acting Department of Environmental Protection (DEP) Secretary Mike Krancer last Tuesday called on all drilling operators to stop delivering wastewater from Marcellus Shale gas extraction by May 19 to 15 facilities currently accepting it, citing newly revised total dissolved solids (TDS) regulations.

At the direction of Republican Pennsylvania Gov. Tom Corbett, acting Department of Environmental Protection (DEP) Secretary Mike Krancer on Tuesday called on all drilling operators to stop delivering wastewater from Marcellus Shale gas extraction by May 19 to 15 facilities currently accepting it, citing newly revised total dissolved solids (TDS) regulations.

If you don’t like the direction of natural gas cash prices, wait a day and they’ll likely change. Such was the case during the first two days of the week as Monday’s across-the-board gains were wiped out by Tuesday’s across-the-board declines.

Pacific Gas and Electric Co. (PG&E) Wednesday began cutting pressure on four natural gas transmission lines at the direction of the California Public Utilities Commission (CPUC).

John W. Somerhalder II., new board chairman of the American Gas Association (AGA) sees an opportunity for natural gas as a transportation fuel.

John W. Somerhalder II., new board chairman of the American Gas Association (AGA) sees an opportunity for natural gas as a transportation fuel.

November natural gas futures continued to retreat as traders noted that much of the direction of the market was determined as much by spread trading as the trading of outright positions. At the close November futures fell 5.0 cents to $3.601 and December shed 3.6 cents to $4.010. November crude oil skidded 45 cents to $82.21/bbl.

Three failed attempts at conquering $5 appeared to be the limit as the July natural gas futures contract on Wednesday headed in the opposite direction. The prompt-month contract traded in a $4.667 to $4.836 range before closing out the regular session at $4.677, down 13.1 cents from Tuesday’s finish.