True to form, Wednesday in the natural gas pit at Nymex had itsshare of price volatility as traders factored the latest storagedata into the market. After a relatively quiet morning, the Octobercontract exploded higher to $5.38 and then tumbled lower to $5.26between 2:00 and 2:10 p.m. As it turned out, the prices produced inthat small trading window held as the prompt month’s daily range.October finished at $5.318, down 4.5 cents for the session.
Articles from futures
With gas futures prices soaring to a new record past $5, now isnot a bad time to raise price forecasts and expectations for thecoming winter and next year. Prudential Securities did just thatlast week by upping its predictions on spot wellhead prices to$4.10 for the second half of the year, $3.55 for all of 2000 and$3.65 for 2001.
With gas futures prices soaring past $5, now is not a bad timeto raise price forecasts and expectations for the coming winter andnext year. Prudential Securities did just that yesterday, uppingits predictions on spot wellhead prices to $4.10 for the secondhalf of the year, $3.55 for all of 2000 and $3.65 for 2001.
In almost an exact blueprint of Friday’s topsy-turvy session,natural gas futures spiked then retraced yesterday as tradersdigested the latest weather news. After gapping higher at the openand putting in a fresh one-month high at $4.43, the Septembercontract succumbed to profit-taking which ushered the prompt monthlower at the close. September finished at $4.348, up 5.2 cents forthe session, but just a fraction of a cent above its low on theday.
Following on the heels of a two-day, 44-cent price rally,natural gas futures continued higher as bullish technical andfundamental clues put traders in the buying mode early yesterday.However, after peaking at $4.29 shortly after 11:00 p.m (EST), theSeptember contract chopped lower throughout the afternoon to settleat $4.25.
The sell-off continued yesterday in the natural gas pit at Nymexas traders continued to take profits following the rally to $4.715last month. After gapping lower for the second day in a row, theAugust contract chopped mostly sideways before finishing at $3.66,down 5.5 cents for the session.
Fueled by strength in the overnight Access trading session,natural gas prices moved higher Friday morning as traders coveredshort positions acquired during the market’s 30-cent move lowerlast week. However, after peaking at $3.93 in the first hour oftrading, the bears went back to work and were ultimately successfulpushing the market lower on the day. The August contract finishedthe session down 2.6 cents at $3.834 in a session that saw anextremely-light, 48,413 contracts change hands.
With little in the way of fresh news on either the technical orfundamental front, natural gas prices took the path of leastresistance yesterday, slipping lower but settling above key supportat $3.80. After plumbing its lowest point in two months at $3.79shortly after 2 p.m. (EST), the August contract finished stronglyto settle at $3.86, down 2.4 cents on the day.
The cash market used Friday’s futures advance, along withexpectations of hotter weather this week, as a springboard toachieve across-the-board gains in double digits Monday.