Influence

Moderating weather trends appeared to trump Monday’s 31.7-cent spike by expiring May futures as the primary influence on cash trading for the end of April Tuesday. The result was mixed price movement in the East in which most points moved up or down by a dime or less. However, mild temperatures in the Rockies and cool conditions in California caused major losses in the Rockies market and mostly lower prices in the rest of the West.

A prior-day screen advance of less than a dime contended for primary influence on Wednesday’s cash market with generally moderate weather fundamentals and expectations that Thursday morning’s storage report will show that the industry returned to net injection mode last week. The results were mixed, with most points remaining close to flat and few straying more than about a dime up or down from Tuesday’s levels.

Following up on the state Senate’s passage (14-6) of a 22.5% tax on oil and natural gas profits, Alaska Gov. Frank Murkowski launched a campaign Tuesday to influence the state House to roll back the tax to his “20-20” plan or risk jeopardizing the deal he has made with major producers to build a $25 billion natural gas pipeline from the North Slope to the Lower 48.

Lending new credibility to the idea that last Friday’s $9.91 high might have been a top, September natural gas futures on Wednesday — with influence from a very weak petroleum sector — put in its lowest settle in four days.

High oil prices, political hype, lack of adequate market information on either the supply or demand side and “bullish” media influence are among the key factors that have been propping up the price of natural gas, which is headed for a fall, according to a newly-issued report by two leading energy analysts.

High oil prices, political hype, lack of adequate market information on either the supply or demand side and “bullish” media influence are among the key factors that have been propping up the price of natural gas, which is headed for a sharp fall, according to a newly-issued report by two leading energy analysts.

Despite claims to the contrary, the influence of non-commercial trading in the gas futures market is growing rapidly and the industry will have to adapt, said Tom Lord, president of Volatility Managers LLC. The question of how it will adapt is not easy to answer, but the process is likely to be painful for most, and could include an exodus of industrial customers seeking shelter in countries with regulated markets.

Despite claims to the contrary, the influence of non-commercial trading in the gas futures market is growing rapidly and the industry will have to adapt, said Tom Lord, president of Volatility Managers LLC. The question of how it will adapt is not easy to answer, but the process is likely to be painful for most, and could include an exodus of industrial customers seeking shelter in countries with regulated markets.

The previous-day screen plunge was able to trump growth in heating load as a cash price influence Tuesday. Some points, primarily in the Gulf Coast and Northeast, were flat to moderately higher, but a decided majority of the market opened the December aftermarket weakly in recording losses ranging from about a nickel to 40 cents or so.