$2.40 gas proved to be too much for July on Wednesday, as thespot futures contract fell 5.5 cents to settle the day at $2.336.July opened at $2.41, but that turned out to be its high trade forthe day as sellers were quick to liquidate positions and takeprofits ahead of the contract’s expiration this Friday.
Articles from Fell
Storage Sinks Gas Futures Once Again
The AGA storage report proved to be an anchor on natural gasfutures prices yet again on Wednesday, as the spot June contractfell 5.2 cents to settle at $2.204. The latest report came in at100 Bcf worth of injections, which increases the surplus versuslast year by 30 Bcf to 403 Bcf. Total estimated volume came in at59,231.
Sonat Plans Massive Divestiture
Following a tough first quarter in which earnings fell short of1Q97 levels by about $32 million, Sonat Inc. announced plans for amassive restructuring of its E&P properties, including the saleof 19% of its gas reserves, or 487 Bcf, and 24% of its production,or 200 MMcf/d.
April Futures Contract Holds On For $2.30 Settle
The April Nymex contract went off the board in bearish fashionon Friday as the spot month fell 3.8 cents to conclude its tradingat $2.300. A broker noted this was as “boring” a settlement day ashe could remember, probably because low volatility last week gavetraders ample opportunities to get out of their positions beforeFriday, he said.
March Futures Go Into Weekend Below $2.20
The March Nymex futures contract fell another 1.9 cents to$2.198 Friday, as traders continued the falloff in prices theystarted on Thursday. “This was not a case of traders gunning forstops, where they try to push the contract under support hoping thecontract will fall even more. This was simply an extension ofThursday,” a broker said.