House Judiciary Committee Chairman Henry J. Hyde (R-IL), whothis summer asked the Federal Trade Commission to investigatepotential price gouging in the gasoline market, has now called onthe agency to investigate the escalation in natural gas prices.
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Senate Debuts Broad-Based Energy Legislation
Alarmed by the U.S. appetite for foreign oil, key SenateRepublicans last week introduced a broad-based legislative packagethat would open up areas that have been closed to drilling in thepast, as well as offer tax measures and other incentives tostimulate the production of crude oil, natural gas and alternativeenergy in the Lower 48 states and Alaska.
November Crosses Key Resistance, Moves Up 10 Cents
November Henry Hub futures burst through the 40-day movingaverage at the open yesterday and never really looked back. Aftercrossing $2.859, speculative fund buyers jumped in, sending thecontract 10.2 cents higher for the day to $2.927/MMBtu. Decembergained 10.7 cents, settling at $3.120. January jumped 9.9 cents to$3.130, and February moved up 7.2 cents to $2.945.
Near-Month October Debuts With Strong Up-Tick
October Henry Hub futures appeared likely to continue lastweek’s downward correction early yesterday in its debut as the newnear-month contract. It opened down nearly 4 cents and took anearly step backward to $2.860, but local buying prompted an11.5-cent intra-day surge to a high of $2.975. The contract settledat $2.969, up 4.7 cents on the day, and the relatively strongup-tick continued during the after-hours Access trading session,with October inching up 1.6 cents to $2.985 as of 6:30 p.m.
Rockies Less Produced than Other Regions
After years of having been plagued by low prices relative to theHenry Hub, Rocky Mountain producers appear to be well positioned tohelp meet the projected 30 Tcf gas market. Even when Canada isconsidered, less gas has been drawn from Rockies basins on apercentage of projected reserves basis than from other NorthAmerican producing regions, noted Thomas A. Petrie of PetrieParkman & Co.
Screen Gain Leads Cash Prices to Modest Firming
The cash market was flat to a little higher Wednesday, and onceagain sources had little but the Henry Hub futures contract to citeas an influence. Most points were flat or just barely higher,however, with only a few coming close to matching the futures riseof over a nickel. The screen seems to be about the only thinghappening for cash, a Midcontinent trader said, “but it [screen] isnot running on fundamentals, just technicals.”
Price Hikes Backed by Futures, Supply Tightness
The cash market resumed its climb Thursday, buoyed by a risingHenry Hub futures contract, a tightening supply situation,spreading cold weather and air conditioning load from Texas throughthe Southeast. A “lean” storage report Wednesday afternoon added tobullish sentiment, a marketer said.
Screen-Influenced Cash Increases Lowest in West
Though the May Henry Hub futures contract eventually settled fora small gain of less than a penny, it was the screen’s morningflirtation with the $2.15-17 area that got most of the credit for astrong performance Tuesday by the cash market. Cash rises tended tofade out going westward to virtually nothing in California trading,but virtually all eastern points were up at least a nickel and inmany cases saw increases approaching a dime.
Initial Plunge Left Far Behind as April Gains 2.5 Cents
After gapping 4 cents lower on the open Thursday, the May HenryHub futures contract quickly prompted eager buying as locals andfunds jumped in to take advantage of the downturn. The contractjumped all the way to a new three-month high of $2.090 beforeprofit-taking triggered a sharp retracement. May ended Thursday’sregular session up 2.5 cents from Wednesday’s close.
Screen Gives Cash a Lift; Westcoast Shuts In McMahon
Taking a cue from a last-day uptick in the Henry Hub futurescontract for February, late-January cash prices ranged from flat toup about a nickel Wednesday. February bidweek numbers were alsomoving a bit higher in several instances, sources said.