Gains

Lower 48 gas production in January climbed half a percent or 0.36 Bcf/d, to a record 72.85 Bcf/d, mainly thanks to production gains in states in the Energy Information Administration’s (EIA) “other states” category.

Cash market quotes nationally were mostly unchanged, but prices declined sharply at New England points and made gains at Midwest locations. A smaller-than-expected inventory draw of 78 Bcf prompted initial futures declines, but traders reconsidered and prices staged a modest advance on the day. At the close March had risen 2.9 cents to $2.477 and April had improved 3.8 cents to $2.636. March crude oil rose $1.13 to $99.84/bbl.

Cash markets out West and at most points throughout the country posted healthy gains as an early announcement by Chesapeake Energy that they would shut in wells and cut back drilling (see related story) boosted quotes across the board with the exception of a few New England and Eastern Seaboard points. Futures responded in kind on heavy trading volume, yet traders were circumspect about whether the market was ready to completely put the brakes on its pervasive downtrend.

The variability of this winter’s weather patterns showed up in market reactions again Wednesday. Losses and gains were close to being evenly divided and mostly small, but they included several spikes in the Northeast. Flat numbers were frequent, especially in the Louisiana production area.

The White House last week credited the U.S. natural gas industry with helping to fuel recent gains in domestic manufacturing.

The U.S. onshore natural gas industry is helping to fuel recent gains in domestic manufacturing, the White House said in a report Wednesday.

The White House on Wednesday credited the U.S. natural gas industry with helping to fuel recent gains in domestic manufacturing.

January natural gas managed a third straight day of nominal gains Thursday as traders largely discounted storage data that showed an ever increasing surplus with no end to the above-average increases in sight. At the close January had risen 1.4 cent to $3.169 and February had risen 0.8 cent to $3.206. February crude oil added 86 cents to $99.53/bbl.

Cash quotes nationwide showed nearly double-digit gains on Thursday, but little strength was seen at Gulf Coast points. Western prices firmed based on strength at AECO and prices rose at eastern pipelines.