Dominating

July and August will see warmer-than-normal temperatures dominating the western United States, especially the northern Rockies and northern Plains, according to forecaster WSI Corp. of Andover, MA.

With storm paths and storage report technical difficulties dominating trading pit conversations Thursday, it’s no wonder that the September natural gas futures contract was mostly rudderless on the day. Despite an inline with expectations 21 Bcf injection for the week ended Aug. 10, the prompt-month bounced between $6.590 and $6.950 before finishing out the day’s regular session at $6.875, up 1.1 cents from Wednesday’s close.

Energy merchant markets are predicted to grow 30% between 2002 and 2006, with oil and natural gas majors and financial service firms dominating the market, while asset-based traders — particularly in power — reengage, according to a report by Massachusetts-based Energy Insights. On the horizon, the study predicted there will be even more participation by financial institutions between 2008 and 2010.

Despite freezing conditions still dominating the weather picture across the northern half of the U.S. and Canada, the cash market was softer at nearly all points Monday. A few flat points, mostly in the Rockies, were exceptions as Northeast citygate plunges of more than 60 cents led overall price declines that were mostly between a nickel and 20 cents.

Because of the size of the power industry, electric companieswill own the gas industry within the next decade, according to anofficial of Engage Energy. Of the 300 LDCs and about 110investor-owned utilities remaining in the country, roughly 100 willbe remaining at the end of the next decade, said David Pruner ofEngage Energy in Houston. The top-50 IOUs will control almost 80%of the entire energy market, he said at the DOE-NARUC natural gasconference in Pittsburgh yesterday.