Finishing off a week that saw front-month natural gas futures put in a new low for the downward move of the last five months, bearish traders kept their foot on the gas pedal on Friday as the January contract continued to put pressure on support levels.
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Futures Sink as Longs Feel the Squeeze
Capitalizing on Tuesday’s downward momentum, December natural gas futures dropped another 30 cents Wednesday to close at $6.405 as rumors swirled that longs were getting squeezed out of their positions.
Futures Sink to Settle Nearly Unchanged for the Week
Downward momentum from Thursday’s weakness bled into the overnight trading session as December natural gas futures plunged into the $6.70s and $6.80s in early Friday morning trade and maintained that price level for the entire regular session. Prompt-month natural gas ended up closing at $6.757, down 22.2 cents from Thursday but only 2.6 cents lower than the previous week’s finish.
Another Grim Forecast Issued for U.S. Gas Rigs
The U.S. natural gas rig count has peaked and is now in the early weeks of a downward correction that is likely to extend through all of 2009 and perhaps most of 2010, an energy analyst said last week.
Another Grim Forecast Issued for U.S. Gas Rigs
The U.S. natural gas rig count has peaked and is now in the early weeks of a downward correction that is likely to extend through all of 2009 and perhaps most of 2010, an energy analyst said Wednesday.
Futures Sink on U.S. Recession Fears
Recession fears that once again knocked down Wall Street on Wednesday also put downward pressure on energy futures as November natural gas dropped 13.5 cents to $6.592 and November crude shaved $4.09 to close at $74.54/bbl.
Short-Covering Rally Sparked by Tropical Storm Gustav
September natural gas futures blasted below the old low for the move downward on Monday before rebounding in afternoon trade on a round of short-covering sparked by the development of Tropical Storm Gustav. The prompt-month contract recorded a low of $7.617 before closing out at $7.825, down 1.8 cents on the day.
Analysts: Drilling Impervious to Coming Gas Price Slide
The recent pullback in natural gas prices is just the beginning of a downward slide that could continue for the next six months, according to analysts at Raymond James & Associates Inc.
Healthy Storage Build Pushes Futures Below $9 Temporarily
The recent downward trend in natural gas futures prices got even more help Thursday from a bearish natural gas storage report. August natural gas almost made its $9 visit a one-day event as the prompt month crashed into $8 territory for the first time in four months before a late rally to close at $9.323, which was still good for a 46.5-cent discount to Wednesday’s close.
Analysts: Drilling Impervious to Coming Gas Price Slide
The pullback in natural gas prices seen last week is just the beginning of a downward slide that could continue for the next six months, according to analysts at Raymond James & Associates Inc.