August natural gas fell in light, pre-holiday trading as traders still maintained an upward bias but noted that healthy production levels still remain a formidable force for the bulls to counter. At the close August had fallen 6.3 cents to $4.311 and September had slipped 6.3 cents as well to $4.330. August crude oil softened 48 cents to $94.94/bbl.
Fell
Articles from Fell
Hedgers Unmoved By Early Heat; July Weakens
July natural gas futures fell in active trading Monday as traders viewed the market as not having sufficient trending characteristics and others were unmoved by early heat. At the close July had fallen 11.1 cents to $4.646 and August had dropped 11.1 cents as well to $4.678. July crude oil tumbled $1.99 to $97.30/bbl.
Most Points Rally With Chilly Weather Continuing
Several Northeast trading locations, mostly in New England, fell Monday despite freezing-or-less overnight lows forecast to persist into Tuesday. However, the rest of the market recorded substantive increases — nearly all in double digits — due to winter-like cold weather lingering into early spring, April futures strength on the preceding Friday and the return of industrial load from its normal weekend decline also contributed to overall upticks.
Most Prices Drop as Spring-Like Weather Spreads
Weekend prices fell at a large majority of points Friday as March appeared to be living up to its “shoulder month” reputation more than when cold weather lingered into the month’s first week. The bearish storage report from a day before, which spurred a dime drop by April futures, and the weekend decline of industrial load were other factors in softer quotes.
Northeast Leads Drops at Nearly All Points
It failed to surprise any traders when prices fell at all but one point Friday. Despite cooling trends in the Midwest and South, moderation dominated the general weather outlook; the latest storage withdrawal report reinforced the perception of plentiful inventories (especially when the Producing region had an unusually early net injection); prompt-month futures had fallen 4 cents on the previous day; and the decline of industrial load during a weekend was a minor bearish factor as usual.
Large Majority of Points Slide on Milder Weather
Although several points clung to flat showings, prices weakened further Thursday as a large number of locations fell, compared to a day earlier when about half the market saw a mild degree of firmness.
LOGA, Louisiana Officials Lock Horns Over Tax Revenue
A Louisiana government official’s statement that the state will see a decrease in tax revenues in coming years due to natural gas drillers moving their operations from taxable areas in South Louisiana to tax-exempt fields in North Louisiana “could not be further from the truth,” according to Louisiana Oil & Gas Association (LOGA) President Don Briggs.
European, American Weather Models at Odds; February Futures Ease
February natural gas futures fell Tuesday as traders factored in a moderate weakening of forecasts calling for near-term cold. Present thinking is that this week’s inventory report is likely to show a huge withdrawal, upwards of 250 Bcf, and any moderation in the weather outlook was thus seen as a reason to temper bullishness. At the close February futures shed 5.5 cents to $4.425 and March eased 4.4 cents to $4.446. February crude oil lost 16 cents to $91.38/bbl.
Revised Weather, Production Data Stir Bears; January Plunges
January natural gas futures fell hard Monday as weather forecasts were adjusted to a slightly warmer outlook, and the Energy Information Administration (EIA) released higher production figures. At the end of the day January futures were down 18.9 cents to $4.210, and February had skidded 17.8 cents to $4.234. January crude oil surged $1.97 to $85.73/bbl.
U.S. Horizontal Rigs Set New Record
A move by shale gas operators to use horizontal drilling techniques in liquids plays may be the impetus in setting a new all-time record for horizontal drilling. A total of 943 horizontal rigs were in operation during the week ending Nov. 5, according to statistics compiled by Baker Hughes Inc. (BHI).