The cash market retreated on average by 6 cents Thursday as traders elected to do their deals ahead of the release of important government inventory figures. Eastern and Northeast points took the biggest hits as forecasters were calling for unseasonably cool weather to infiltrate the Midwest and Ohio Valley, while losses in California were limited as a heat wave was expected to stay through the weekend..
Articles from Figures
Devon Energy recently completed its fourth horizontal well in the Tuscaloosa Marine Shale (TMS) and the initial production test figures show the strongest oil production results of the company’s TMS wells drilled to date” at 384 b/d, according to the Louisiana Department of Natural Resources (DNR).
Hollywood is preparing to bring Marcellus Shale oil and natural gas drilling to the big screen next winter and has started filming in Western Pennsylvania.
Lower 48 gas production in January climbed half a percent or 0.36 Bcf/d, to a record 72.85 Bcf/d, mainly thanks to production gains in states in the Energy Information Administration’s (EIA) “other states” category, which included drilling activity in the Marcellus Shale.
Natural gas futures gained ground ahead of weekly government storage figures Wednesday, but cash market participants saw prices ease by mostly less than a dime, ecept for a few Northeast points which dropped by less than 15 cents. At the close of futures trading March rose 1.7 cents to $2.643 and April added 0.2 cent to $2.775. April crude oil gained 3 cents to $106.28/bbl.
February natural gas continued lower Thursday following the release of government inventory figures confirming traders’ estimates of an ever-growing surplus. The front-month contract broke below the $2.409 long-term support level from September 2009.
February natural gas settled at a new 10-year low Wednesday as traders hinted that Thursday’s release of Energy Information Administration (EIA) inventory figures would likely prompt further declines even if the data was bullish relative to expectations.
February natural gas futures rose Wednesday as traders covered short positions ahead of the release of government inventory figures. At the close February had risen 10.3 cents to $3.096 and March had gained 10.5 cents to $3.127. February crude oil rose by 26 cents to $103.22/bbl.
Thursday’s price driver was the release of government inventory figures that came in only slightly bearish but were sufficient to send February futures nearly a dime lower.