Heavily

Expectations of a troubled economy in 2009 shouldn’t weigh too heavily on the minds of gas producers if analysts at Barclays Capital are correct in their demand projections. Demand will be weak to be sure, but not as weak as some might fear, they say.

Natural gas traders are relying more heavily on upcoming weather patterns to determine short-term price direction rather than focusing on storage or demand patterns. The most important demand pattern natural gas futures traders were concerned about Tuesday was the supply of contracts, and the buyers prevailed. January natural gas futures rose 10.6 cents to $7.141 and February added 10.2 cents to $7.278.

Unless the price of natural gas falls sharply, New England likely will depend heavily on it as the main fuel for electricity production for the next 20 years, according to an analysis issued Thursday by ISO New England.

Unless the price of natural gas falls sharply, New England likely will depend heavily on it as the main fuel for electricity production for the next 20 years, according to an analysis issued on Thursday by ISO New England.

Following a strong launch of the May aftermarket on Monday, things had settled down a lot Tuesday. Price movement was mixed but leaned heavily toward the downside. Growing cooling load across the southern half of the U.S. was starting to flag slightly in some sections, proving to be insufficient at this point to sustain price firmness, while mild weather meant very little weather-based load at all in northern market areas.

Facing the stark realities of California’s heavily natural gas-dependent power supplies, Southern California Edison Co. Wednesday announced plans to issue a request for offers (RFO) next month for natural gas supply contracts and financial hedge products stretching out almost five years. The Edison International utility said it received a “robust response” to its Dec. 12 request for information from potential suppliers.

Mild weather, weak demand and a 58 Bcf weekly storage injection, which was slightly on the high end of expectations, Thursday weighed heavily on cash prices, which on average fell 10-65 cents.

The U.S. Atlantic Basin could be in for a particularly active hurricane season, according to Colorado State University’s heavily anticipated hurricane forecast, which was released on Friday. The new forecast predicts the season will be worse than previously forecasted.

The U.S. Atlantic Basin could be in for a particularly active hurricane season, according to Colorado State University’s heavily anticipated hurricane forecast, which was released on Friday. The new forecast predicts the season will be worse than previously forecasted.