Driven

Crude oil futures continued their recent record-setting ways Tuesday, jumping more than a dollar to $51.09/bbl — the first daily settlement ever above $51. And although some natural gas traders may have felt it was akin to comparing apples with oranges, gas in both its physical and Nymex forms tried to emulate petroleum’s strength as best it could.

The cash market recorded solid rebounds at all points Thursday in what one source said was more a response to the previous day’s strength throughout Nymex’s energy futures complex than to any underlying fundamental support. A majority of gains were in the teens, with an overall range from about a nickel to a quarter.

Several traders had expected that the cash market had one more day of firmness left in it before softening for the weekend, but Wednesday’s screen gain of nearly a dime and continued cooling demand proved insufficient to avert price losses across the board Thursday. And despite a bullish storage report that prompted a screen spike Thursday, sources continued to look for further declines Friday.

As anticipated, the previous day’s futures plunge of nearly 30 cents was reflected by overall softness in Tuesday’s cash market. But there was enough hot weather demand to distribute pockets of flat to higher prices here and there.

In concert with a fear-driven rally in the nearby crude oil pit, Nymex natural gas futures catapulted 37 cents higher Monday to $6.231, dragging most of the subservient natural gas cash market with it. Cash prices were up 5-20 cents on average across the board with some of the larger increases in the West where a spring heat wave was driving up demand.

It hadn’t reached the southern tier of states or Mid-Atlantic quite yet, but wintry conditions or a reasonable facsimile dominated the weather picture Wednesday and forecasts for the next few days in the rest of the U.S. and Canada. The cash market responded with major gains that were as small as 15-30 cents in most of the West but hit 35-70 cents or so throughout the East.

Driven by net-back growth in its deepwater Gulf of Mexico (GOM) operations, Calgary-based independent Nexen Inc. on Thursday reported a year-over-year 3% increase in third production.

Driven largely by the year-round tightness in natural gas supply and expectations of normal temperatures for the upcoming heating season, the Energy Information Administration (EIA) in its “Winter Fuels Outlook” said last Tuesday it foresees residential customers consuming less gas but paying more this winter despite an anticipated adequate level of supply and lower wellhead prices.

Driven largely by year-round tightness in natural gas supply and expectations of normal temperatures for the upcoming heating season, the Energy Information Administration (EIA) in its “Winter Fuels Outlook” said Tuesday it foresees residential customers consuming less gas but paying more this winter.