Failing

After failing to successfully probe the downside, natural gas bulls took control Thursday at Nymex following the news that only 80 Bcf was injected into underground storage facilities last week. At 12:45 p.m. EDT the June contract was up 22.5 cents for the session at $5.885. It closed at $5.772, 11.2 cents above Wednesday’s close. With 96,927 contracts changing hands, trading volume was heavy.

After failing to extend to Friday’s $5.33 low following a bearish open, the natural gas futures market rallied Monday as traders priced in data showing it was colder last week than forecasts had predicted.

After failing to reach Monday’s high despite an early-morning Access session rally, the natural gas futures market ground lower Tuesday as the midweek doldrums again favored bears. The May contract closed at $5.108 down 2.6 cents in a session that only saw only 47,344 contracts change hands.

The Federal Energy Regulatory Commission demonstrated “a shocking absence of regulatory vigilance,” and failed to restructure itself to oversee a competitive market, according to a memorandum produced by Democratic Sen. Joe Lieberman’s (CT) Senate Committee on Governmental Affairs. The report attempts to place at least part of the blame for the Enron debacle at FERC’s door.

TXU Corp. will write off $4.241 billion in obligations against failing subsidiary TXU Europe LLC, according to a pro forma financial filing 8-K with the Securities and Exchange Commission on Tuesday. The adjustments for the fourth quarter will include “anticipated obligations” to pull out of Europe, which totals about $3.611 billion to write off the European investment.

After failing to fill in the chart gap created by the higher opening, natural gas futures erupted to new 16-month highs Monday, as traders bought heavily into the season’s first blast of cold weather. Including Monday’s price hike, the November contract has notched gains in four out of the last five sessions, advancing 17% off the $3.67 low Oct 7. It closed at $4.303 Monday, up 15.7 cents for the session. At 104,033, heavy estimated volume was proof that few traders elected to observe the Columbus Day holiday.

Plant management and personnel were at fault in failing to discover, until it was almost too late, a leak and significant corrosion in a reactor vessel head at the Davis-Besse nuclear power plant, at Oak Harbor, OH, according to a report submitted to the Nuclear Regulatory Commission (NRC) by plant owner FirstEnergy Nuclear Operating Co. (FENOC) last Thursday.

After failing to break to beneath pivotal support etched last Wednesday, natural gas futures rocketed higher Monday as commercial traders greeted the return of hot temperatures, and non-commercial traders rushed to cover shorts. The September contract was the biggest beneficiary of the buying surge, closing 20.4 cents higher at $2.965. Estimated volume across all months was moderate, with an estimated 81,811 contracts changing hands.

Failing to concede any wrongdoing on its part, Northern Natural last week entered into a stipulation and consent agreement with FERC to resolve the agency’s concerns about a $450 million loan that the regulated pipeline secured to help bail out its then-parent, Enron Corp., just before Enron sank into bankruptcy last year. Northern Natural signed the agreement with FERC Chief Accountant John Delaware and the Office of General Counsel’s Market Oversight and Enforcement section.