The big, sustained rally in 2010 U.S. natural gas prices predicted by some on Wall Street likely will fizzle as soon as the uncompleted wells and shut-in supply flood back into the market, energy analysts said last week.
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The big, sustained rally in 2010 U.S. natural gas prices predicted by some on Wall Street likely will fizzle as soon as the uncompleted wells and shut-in supply flood back into the market, energy analysts said Monday.
“We could call it ‘the blizzard that wasn’t,'” jested a marketerin reference to the Nor’easter that had been billed as the firstbig winter storm of the year in the Northeast but turned out to berelatively benign after all. It and other market factors werelosing their price-boosting punch Tuesday, with the result thatnearly all points ranged from flat to about 20 cents lower. Thestandout exception to the general market was a Southern Californiaborder plunge of more than $5.
Realizing that bulls had spent all their bullets, bears hadtheir way at Nymex for the second-straight session Wednesday asthey took prices lower in several selling waves. Not even amid-morning rally could dissuade traders from continuing to takeprofits following the market’s precipitous spike to $9.65 earlierin the week. As a result, the January contract was left to slumplower for much of the afternoon, finishing 60.8 cents lower at$7.537.
Less than 24 hours after posting a new all-time high for aprompt month, the July contract was hit with massive longliquidation that sent the expiring contract 31.7 cents loweryesterday to $4.369.
For the second day in a row, the natural gas futures market wascaught in tug of war as traders weighed their options-either buyinto the recent rally or sell, expecting a return to thelong-standing downtrend. The indecision could be seen inyesterday’s price action where prices trended higher in the morningonly to turn sharply lower in the afternoon. The May contractfinished 4 cents lower at $2.096.