futures

Despite the large post expiration-day futures correctiondownward last Thursday, prices rebounded some Friday and for goodreason, according to Salomon Smith Barney energy analyst RobertMorris.

Despite the huge post expiration-day futures correction lastThursday, prices rebounded some Friday and for good reason,according to Salomon Smith Barney energy analyst Robert Morris.

Despite good support from gas futures, eastern cash prices weredropping by a nickel or so Monday as comfortable fall-like weatherprevailed almost everywhere and Hurricane Isaac remained extremelyremote from the Gulf of Mexico.

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.

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.

Propelled by follow-through buying on the heels Wednesday’sbullish storage report, natural gas futures shuffled higheryesterday, as traders looked past the expiring August contract tofocus on the out months.