Globex

After dipping to a new low for the move at $3.049 repeatedly in overnight Globex trade, September natural gas futures rebounded a bit during Wednesday’s regular session. Falling just short of sub-$3 prices for the first time since the same week of 2002, the prompt-month contract ended up closing the day’s session at $3.119, up 2.3 cents from Tuesday’s close.

After trading higher in the overnight Sunday Globex session, May natural gas futures burst even higher during Monday’s regular session, recording a high of $11.360 before going off the board at $11.280, up 31.7 cents from Friday’s close. With the May contract expired, attention now turns to June futures, which peaked at $11.455 on Monday before settling at $11.329, up 22.8 cents from Friday’s close.

A former board member of the New York Mercantile Exchange (Nymex) pleaded guilty last Tuesday to two felonies — illegal trading in the natural gas market and tampering with physical evidence.

After trading lower in the overnight Globex session in anticipation of a bearish storage withdrawal, natural gas futures traders were already well prepared when the Energy Information Administration (EIA) reported that 49 Bcf was removed from underground storage for the week ended Jan. 5. After almost no reaction on the report’s 10:30 a.m. EST release, the February natural gas futures contract plummeted in afternoon trade, recording a low of $6.250 before settling at $6.292, down 46.3 cents on the day.

It looked like an “after-Christmas sale on natural gas,” one analyst observed, as January futures plunged below the psychological $6 level in overnight Globex trading and continued the trend during Wednesday’s open outcry session. In its last day as front month, the contract recorded a low of $5.740 before expiring at $5.838, down 27.5 cents on the day. The February contract shed 19.1 cents to close at $6.142.

After dipping below the psychological $7 level in Monday’s overnight electronic trading session on Globex, traders on Tuesday were unable to muster any follow-through selling. However, they also were not able to create any real rally as the prompt month ended up closing out the day at $7.083, up eight-tenths of a cent from Monday’s close.

After tracking lower in Sunday’s overnight Globex trading session on news that some weather forecasts were calling for moderating temperatures next week, Nymex January natural gas futures maintained the downward price momentum throughout Monday’s regular session. Just two sessions after the prompt month reached a $9.050 high, the very same contract on Monday reached a low of $7.780 before closing at $7.806, down 61.6 cents from Friday’s close.

After working lower in the Sunday overnight Globex trading session, December natural gas futures opened Monday at $7.570 and stayed within a slim 20-cent range for the entire session as milder temperature forecasts and a technical failure to breach the $8 level last week kept the bulls penned in. After putting in a $7.630 high and a $7.430 low for the day, the prompt month ended up closing at $7.490, down 39.4 cents from Friday.

After trading lower in the overnight Globex session to just under support at $7.180, December natural gas rebounded during Tuesday’s session, recording a high of $7.600 before settling at $7.534, up 11.8 cents on the day.