Another hurricane season may just be starting, but natural gas producers haven’t forgotten the last one and have tweaked their risk management strategies accordingly. Producers are paying more to preserve upside, but utilities could get caught out later if they lock in too high.
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NGI The Weekly Gas Market Report
Hurricanes Coming: Producers Uncap Upside
Another hurricane season may just be starting, but natural gas producers haven’t forgotten the last one and have tweaked their risk management strategies accordingly. Producers are paying more to preserve upside, but utilities could get caught out later if they lock in too high.
Storage Forgotten As Crude Sell-Off Drives Nat Gas Futures
With the middle-of-the-road natural gas storage report unable to exert any influence on the natural gas futures market, the newly-minted prompt month was left with no other choice than to follow big brother crude’s lead lower in Thursday trading.
CA Republicans Call for Special Session on Natural Gas Issues
Hoping to make some political points and address a somewhatforgotten side of California’s energy woes, the minority RepublicanParty leaders in the state legislature Monday asked Gov. Gray Davisto call a second, concurrent special session of the state lawmakersto address natural gas supply and price issues that are related tothe electricity crisis.
Gas Futures Set New All-Time High; Settle Above $6.00
In a trading session that won’t soon be forgotten by bull norbear yesterday, natural gas futures marched easily higher as earlylong accumulation by funds morphed into a buying free-for-all whencommercials and locals entered the ring. After setting its dailylow during the first hour of trading at $5.80, it was up, up andaway for December, as it notched a new all-time commodity high at$6.025. The prompt month finished 31.8 cents higher on the day at$6.016. Meanwhile, soon to be spot month January was no slouch,gaining 29.6 cents to close at $6.002.