Inventory

Encana Corp. has launched a plan to sell its 52,000 net acres of property in the Barnett Shale of North Texas, which currently produce 125 MMcfe/d.

September natural gas futures fell Wednesday as traders anticipated the release of inventory additions well above last-year and seasonal norms, but it was not enough to dampen the case for a seasonal advance, analysts pointed out. At the close September had fallen 7.1 cents to $3.922 and October had retreated 7.9 cents to $3.889. October crude oil shed 28 cents to $85.16/bbl.

September natural gas advanced Thursday following the release of government inventory data showing a significantly smaller increase than what the market was expecting. The Energy Information Administration (EIA) reported a build of just 25 Bcf, about 11 Bcf less than industry estimates. September futures rose 10.5 cents to $4.108 and October gained 10.3 cents to $4.127. September crude oil jumped $2.83 to $85.72/bbl.

September natural gas rose Tuesday despite projections showing moderating temperatures and higher inventory injections. At the close September natural gas had risen 5.9 cents to $3.994 but failed to settle above important resistance at $4, and October had added 5.8 cents to $4.015. September crude oil plunged $2.01 to $79.30/bbl.

September natural gas was unchanged Friday as the volatility following Thursday’s inventory report all but vanished, and managers see an oversold but non-threatening market. At the close September was flat at $3.941 and October had risen 0.7 cent to $3.962. September crude oil added 25 cents to $86.88/bbl.

September natural gas retreated Thursday following the release of inventory data that was somewhat greater than what the industry was expecting. September lost 7.4 cents to $4.244 and October shed 7.6 cents to $4.257. September crude oil rose 4 cents to $97.44/bbl.

The Henry Hub spot price for natural gas will average $4.26/MMBtu over the second half of the year as the working gas inventory deficit relative to last year narrows, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for July. It expects the spot price to climb next year as the market tightens.

The Henry Hub spot price for natural gas will average $4.26/MMBtu over the second half of the year as the working gas inventory deficit relative to last year narrows, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for July. It expects the spot price to climb next year as the market tightens.

August natural gas futures tumbled Thursday following the release of inventory data showing greater-than-expected increases. For the week ended July 1, the Energy Information Administration reported a build of 95 Bcf, about 10 to 15 Bcf greater than what traders were expecting. Prices quickly obliged following the 10:30 a.m. EDT report and by the close August futures had declined 8.4 cents to $4.133 and September had jettisoned 8.4 cents as well to $4.138. August crude oil soared $2.02 to $98.67/bbl.