Healthy

Upstream mergers and acquisitions (M&A) staged a strong recovery by the end of 2009 and a “healthy” transaction level is on course to continue through 2010, according to a new review by energy consultant Wood Mackenzie.

With a lack of significant cold around the country and expectations of a healthy storage injection report Thursday, December natural gas futures on Wednesday continued to probe lower price levels. The prompt-month contract reached a low of $4.719 before closing the regular session at $4.725, down 19.7 cents from Tuesday’s close.

July natural gas futures posted a healthy gain Wednesday as traders acknowledged the likelihood that in spite of bearish fundamentals the market has put in a bottom and also observed new buying. July futures rose 12.4 cents to $4.253, and August gained 11.2 cents to $4.424. July crude oil added 56 cents to $71.03/bbl.

Natural gas prices will likely remain between $3.75 and $4.75/MMBtu this summer due to healthy storage levels and normal temperature forecasts, according to Stephen Smith of Stephen Smith Energy Associates.

Natural gas prices will likely remain between $3.75 and $4.75/MMBtu this summer due to healthy storage levels and normal temperature forecasts, according to Stephen Smith of Stephen Smith Energy Associates.

Following Thursday morning’s report from the Energy Information Administration (EIA) that a healthy 46 Bcf was injected into underground natural gas storage for the week ended April 17, futures traders took advantage of the bearish news to push the May contract to new lows for the move. The front-month contract ended up closing out Thursday’s regular session at $3.409, down 12.3 cents from Wednesday’s finish.

The slumping economy and healthy levels of natural gas in storage continued to put downward pressure on the commodity’s price on Thursday as the February contract put in a new low for the downtrend before closing out the regular session at $4.681, down 9.9 cents from Wednesday’s close.

December natural gas futures staged a stout advance as near-term weather expectations provided a healthy incentive for buyers. The National Weather Service in its six- to 10-day forecast showed a broad stretch of the country from Louisiana to Vermont and as far west as Kentucky as having to endure below-normal temperatures. From Chicago to Dallas all the way to the West Coast was forecast to be above normal. December futures rose 22.1 cents to $6.533, and January rose 17.3 cents to $6.641. December crude oil slipped $2.09 to $54.95.

November natural gas futures fell hard and fell often in Thursday’s trading. The 10:35 a.m EDT release of Energy Information Administration (EIA) inventory statistics revealed a healthy 70 Bcf injection, slightly less than anticipated but ahead of last year and long-term averages. November fell 35.8 cents to settle at $6.419, and December dropped 35.8 cents as well to $6.619. December crude oil rose $1.09 to $67.84/bbl.