futures

The potential for oil and gas prices to continue rising rather than flatten out, as the current futures market suggests, could put optimistic economic forecasts in jeopardy, Federal Reserve Chairman Alan Greenspan told the House Financial Services Committee Wednesday. As energy prices rise and place upward pressure on costs, Greenspan said the central bank would likely continue increasing interest rates gradually to curb core inflation.

The Commodity Futures Trading Commission (CFTC) said Thursday that it is seeking a court ruling to compel McGraw Hill to turn over natural gas transaction data. The agency filed an application with the U.S. District Court for the District of Columbia seeking enforcement of a subpoena it issued in April.

In its debut as Nymex prompt month, the July natural gas futures contract was a bull’s dream Friday as it surged higher to nearly erase losses suffered in sympathy with Thursday’s expiration-day June contract liquidation. A combination of speculative short-covering and end-user buying were cited as factors in the rally that propelled July up 15.8 cents to $6.370 Friday, two ticks shy of Wednesday’s $6.372 close. On Thursday, the June contract tumbled 19.2 cents to go off the board at $6.123.

The White House last week forwarded to the Senate the nomination of Reuben Jeffery III to be a commissioner and chairman of the Commodity Futures Trading Commission (CFTC).

The White House this week forwarded to the Senate the nomination of Reuben Jeffery III to be a commissioner and chairman of the Commodity Futures Trading Commission (CFTC).

Caught between longer-term bearish fundamental market conditions and shorter-term bullish technical factors, the natural gas futures market chopped sideways to higher in relatively light trading activity Tuesday. And while neither side could claim the day as a victory, the market finished on a positive note, with the June contract ekeing out a 3-cent advance to close at $6.476.

As expected, generally weak weather-related demand, large day-earlier drops in energy futures and the decline of industrial load over a weekend combined to send prices lower by double digits across the board Friday. Some drops were as small as a little over a dime, but they ranged to just above 40 cents.

Still trying to figure out which direction to head next, June natural gas futures on Friday recorded a $6.78 high in morning trade before moving lower for the remainder of the session. The prompt month recorded a low of $6.55 late in the session before settling at $6.621, down 7 cents on the day, but 3.6 cents higher for the week.

A federal judge in Washington DC has ordered the Commodity Futures Trading Commission (CFTC) to turn over to E.& J. Gallo Winery documents obtained during an investigation into the natural gas trading activities of WD Energy Services Inc. for use in Gallo’s lawsuit against the now-defunct U.S.-based energy trading unit of EnCana Corp.