January

The deadly explosion at the liquefied natural gas (LNG) complex in Skikda, Algeria in January “should not be a basis for scare-mongering” attacks in the United States against the fuel, said the Algerian ambassador to the U.S. last Tuesday.

The deadly explosion at the liquefied natural gas (LNG) complex in Skikda, Algeria in mid-January “should not be a basis for scare-mongering” attacks in the United States against the fuel, said the Algerian ambassador to the U.S. on Tuesday.

News reports from Algeria, supplemented by comments from that nation’s Washington, DC-based ambassador, cite the possibility that a liquefied natural gas (LNG) pipeline leak may have been the cause of the explosion and fire that killed 27 people Jan. 19 at the Skikda liquefaction plant that processes natural gas for oceanic transport as a liquid.

Buoyed by forecasts suggesting February may be just as cold as January, the natural gas futures market notched a second straight daily advance Tuesday as traders continued to eschew the short side of the ledger. However, the market remains in a state of flux technically, prompting some observers to believe the market will have a difficult time rebounding from current levels to post new highs.

While Nymex screamed out of control Monday, with the January contract moving 76.7 cents higher to $6.930, the cash market largely sat back and watched in shock. Most cash points ended the day down about 20 cents in delayed response to Friday’s futures slide and the short-term forecasts in the Northeast for a little bit milder weather by Wednesday. Cash trading on Tuesday, however, almost certainly will be a different story.

With January natural gas futures prices up $1.412 in just five days of trading as the near-month contract soared to $6.337 on Thursday, Lehman Brothers analysts quickly stowed their bear claws and slapped on a set of bull’s horns. Analyst Thomas Driscoll questioned the causes of the run-up in prices but wasn’t hesitant to raise his gas price forecast by 75 cents to $4.50/MMBtu next year. He also tacked on 50 cents to his forecast for 2005, raising it to $4.25 from $3.75.

With January natural gas futures prices up $1.412 in just five days of trading as the near-month contract soared to $6.337 on Thursday, Lehman Brothers analysts quickly stowed their bear claws and slapped on a set of bull’s horns. Analyst Thomas Driscoll questioned the causes of the run-up in prices but wasn’t hesitant to raise his gas price forecast by 75 cents to $4.50/MMBtu next year. He also tacked on 50 cents to his forecast for 2005, raising it to $4.25 from $3.75.

After two nominations by the White House, one last year and again in January, the Senate Energy and Natural Resources Committee has scheduled a hearing this week to consider the confirmation of Joseph T. Kelliher to one of two open seats on the Federal Energy Regulatory Commission. His nomination, however, could be put on hold by Senate Democrats.

After two nominations by the White House, once last year and again in January, the Senate Energy and Natural Resources Committee has scheduled a hearing next week to consider the confirmation of Joseph T. Kelliher to one of two open seats on the Federal Energy Regulatory Commission.