Forecasters

The previous day’s 8.8-cent gain by September futures, along with some forecasters saying there was a chance Tropical Storm Fay could reenter the Gulf of Mexico (GOM) closer to the offshore production area, resulted in higher prices in most of the cash market Wednesday.

July natural gas futures closed sharply higher Monday as weather forecasters called for normal to above-normal temperatures across the country. Traders noted a strong technical feature to the market and said they expect a settlement above $13 this week. At the close July had added 30.8 cents in rising to $12.933 and August futures gained 30.9 cents to $13.037. July crude oil eased 25 cents to $134.61/bbl.

Joining the chorus of other forecasters who have recently warned of a “very active” 2007 Atlantic hurricane season, forecasting network WeatherBug said it is predicting 13 to 15 named storms in the Atlantic, seven to nine of which are expected to develop into hurricanes. Of those hurricanes, three are forecast to become major hurricanes with winds in excess of 111 mph.

Joining the chorus of other forecasters who have recently warned of a “very active” 2007 Atlantic hurricane season, forecasting network WeatherBug said it is predicting 13 to 15 named storms in the Atlantic, seven to nine of which are expected to develop into hurricanes. Of those hurricanes, three are forecast to become major hurricanes with winds in excess of 111 mph.

Gas storage withdrawals last week may have broken the weekly record set Jan. 17, 1997 at more than 260 Bcf, according to a number of forecasters. Not only did the severe cold early in the week send gas demand to peak levels on some northeastern local distribution systems, but the extended cold also sustained high withdrawals for multiple days.

Wrapping up the pleasantly weak 2006 Atlantic hurricane season, which officially came to an end last Thursday, forecasters at the National Oceanic and Atmospheric Administration (NOAA) said the seasonal activity was lower than everyone expected due to the rapid development of El Nino — a periodic warming of the ocean waters in the central and eastern equatorial Pacific, which influences pressure and wind patterns across the tropical Atlantic.

Natural gas bulls were licking their lips following the long holiday weekend as weather forecasters Monday were calling for a significant dose of cold Canadian air to sweep across the country from west to east this week. Opening higher following the overnight trading Sunday, December natural gas futures on Monday put in a high of $8.025 before settling at $7.998, up 28 cents on the day.

Joining the ranks of other experts such as Colorado State University (CSU) forecasters William Gray and Philip Klotzbach who have been recently slashing their 2006 Atlantic hurricane activity predictions, Andover, MA-based WSI Corp. downgraded its outlook last week for the second time in two months. WSI said it now expects the tropical season to have 13 named storms, six hurricanes and three intense hurricanes (Category 3 or greater).

Chiming in on the Atlantic hurricane season, which begins Thursday, Andover, MA-based WSI Corp. agreed with other forecasters that the tropical season should be “another active” one, but that it should pale in comparison to last year’s tally of 27 named storms.