Front

A cold front moving in to cool off the previously sizzling Northeast and huge negative pressure from Monday’s screen plunge helped ensure that cash prices fell Tuesday at all points except one, which saw a tiny gain.

In their first regular session as prompt month, April natural gas futures accomplished something the March contract failed to do its entire run at the front, which is break convincingly below entrenched support around the psychological $7.00 area. The prompt month ended up settling 52.4 cents lower than Friday at $6.789, setting a nine-month low. The July 2005 contract settled exactly at $6.789 on June 1, 2005.

The cold front that moved into the Midwest and East last week proved to be pivotal for the natural gas storage picture as the Energy Information Administration (EIA) reported Wednesday that 8 Bcf was withdrawn from natural gas stores for the week ended Nov. 18. The first withdrawal of the season was seen as bullish when compared to a majority of the industry’s expectations. However, on weak pre-vacation volume, the prompt month closed out the short week at $11.620, six-tenths of a cent higher on the day.

With the November contract’s expiration out of the way, December natural gas spent its first regular session as front month exploring support lines. After notching a low of $12.88, December went on to settle at $13.055, down 62.9 cents on the day and 11.2 cents lower than the contract’s previous Friday close. November natural gas expired Thursday at $13.832.

The newest branch of Canada’s gas industry, coalbed methane, will be its hottest growth front for a second consecutive year in 2006, field contractors predict.

About seven lines of text added by Rep. Jim McGovern (D-MA) to the recently enacted Transportation Equity Act erects a major road block in front of the proposed Weaver’s Cove LNG import terminal in Fall River, MA. The new law makes it illegal for the Brightman Street Bridge, connecting Fall River and Somerset, MA, to be demolished to allow LNG cargo traffic up the Taunton River to the terminal.

While all has been quiet on the storm front in the Gulf of Mexico over the past few weeks, recent revised forecasts are calling for more tropical storms and hurricanes than previously expected for the remainder of the 2005 Atlantic storm season.

Spot natural gas prices are expected to remain in the range of $6.50/Mcf to $7/Mcf through the summer despite the high level of gas in storage, according to the Energy Information Administration’s (EIA) Short-Term Energy Outlook for June.

Spot natural gas prices are expected to remain in the range of $6.50/Mcf to $7/Mcf through the summer despite the high level of gas in storage, according to the Energy Information Administration’s (EIA) Short-Term Energy Outlook for June.