Expectations

Natural gas bulls continue to hear no good news from analysts, who have begun to lower their price expectations for 2012.

U.S. natural gas prices are set to rise beyond current market expectations, climbing by about 50% between 2011 and 2020, or 4% per year, to surpass $8/MMBtu, according to a report by the Deloitte Center for Energy Solutions.

As policymakers, stakeholders and industry players all try to rethink the domestic natural gas landscape, the use of gas in transportation continues to raise expectations for robust growth in the next few years. A report from Colorado-based energy research firm Pike Research LLC reiterated the growth scenario, but not without some caveats.

As policymakers, stakeholders and industry players all try to rethink the domestic natural gas landscape, the use of gas in transportation continues to raise expectations for robust growth in the next few years. A report from Colorado-based energy research firm Pike Research LLC reiterated the growth scenario, but not without some caveats.

U.S. natural gas prices are set to rise beyond current market expectations, climbing by about 50% between 2011 and 2020, or 4% per year, to surpass $8/MMBtu, according to a new report by the Deloitte Center for Energy Solutions.

August natural gas futures continued to advance Tuesday, making it three consecutive gains driven in large part by expectations of higher temperatures raising cooling load and limiting storage injections. Traders caution, however, that at some point the market may reach a point where further forecasts of warm weather may not have much impact and prices could tumble. At the close August had risen 4.5 cents to $4.333 and September had gained 3.5 cents to $4.312. August crude oil gained $2.28 to settle at $97.43/bbl.

July natural gas took another small step higher Wednesday as traders adjust to strong interest by algorithmic and fund players and expectations of much-below-normal inventory increases in a government inventory report Thursday.

April natural gas futures staged a sharp rally Friday as traders noted deeply oversold conditions that were ripe for a short-covering rally. In the words of one trader it was “bound” to happen. At the end of the day April had risen 13.3 cents to $4.005 and May had gained 13.3 cents as well to $4.073. April crude oil tacked on 60 cents to $97.88/bbl.

GMX Resources Inc. (GMXR) said it has branched out from its Haynesville/Bossier natural gas-directed properties, collecting about 67,724 net acres within the core horizontal oil development areas of the Bakken/Sanish-Three Forks Formation in the Williston Basin and the Niobrara Formation in the Denver-Julesburg (DJ) Basin.