Despite the current bearish landscape in natural gas market fundamentals, Raymond James analyst J. Marshall Adkins said he sees a “continued rebound in gas prices” going into 2007 as “the natural gas overhang experienced throughout the injection season will dissipate.” As a result the analyst’s group is still predicting $10 Henry Hub gas for the entirety of 2007.
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Futures Finish Week Lower on Strong Storage, Amaranth Fallout
With no sign of bullish fundamentals anywhere to be found, October natural gas futures pushed lower again Friday to close at $4.627, down 15.4 cents on the day and 35.5 cents lower for the week.
Some Western Points Defy Continued Softness
Most of the cash market was falling again Wednesday as weather and storage fundamentals remained bearish. However, several western points (primarily in the Rockies) were flat to a little more than a quarter higher. The majority of losses ranged from about a nickel to 30 cents or so.
Rally Ends at Most Points, But Some Still Rising
The cash market finally bowed — but not totally — to the reality of weak weather fundamentals and the steadily diminishing possibility of Tropical Storm Florence even reaching North America, much less the Gulf of Mexico. Although a majority of points recorded moderate losses Thursday, there were still quite a few that were flat to a dime higher.
Hesitant Buyers, Sellers Leave Futures Directionless
Natural gas futures trading on Wednesday mimicked Tuesday’s lackluster performance. Bulls were wary of bidding the market up in the face of bearish fundamentals, while the bears weren’t ready to risk testing the lower $5 level with winter just a few short months away.
Dime-Plus Gains Dominate; TS Threat Fading
Despite weather fundamentals remaining weak for the most part, cash prices were able to ride the screen’s 16.2-cent gain Tuesday and modest further futures strength the next morning to post gains across the board Wednesday.
EIA Reports 48 Bcf Build; Futures Battle Against Fundamentals
After absorbing the inconsequential natural gas storage report for the week ended Aug. 25, October natural gas futures traders, staring at nothing but bearish fundamentals, pushed the market lower Thursday, briefly plunging the prompt-month below the psychological $6 price level. October natural gas ended up closing out the day at $6.048, down 24.2 cents.
Flat Questar Avoids the Softness of All Other Points
Flat quotes for Questar made it the only point failing to bow to weak fundamentals and five straight prior trading days of falling futures Thursday. The rest of the cash market saw price drops ranging from a little less than a nickel to about 55 cents.
Most Points Modestly Firmer in Mixed Market
The weather fundamentals didn’t seem to be there, and the screen had extended a three-day slide with a drop of 35.6 cents the day before (adding a loss of another nickel Wednesday). But a mixed cash market showed a moderate bias to the upside Wednesday.
Futures Rebound Despite Moderating Temps, Clear Atlantic
Following a down day Monday, September natural gas futures shot higher Tuesday morning despite bearish fundamentals, which left some market participants scratching their heads. Despite moderating temperatures nationwide and nearly no activity in the tropics, the prompt month reached a morning high of $7.24 before easing off in the afternoon to close at $7.158, up 25.1 cents on the day.