Lack

On Friday and Monday the cash market had a fair amount of higher points mixed into an overall falling trend. But continuing weak fundamentals finally united the entire market in southward movement Tuesday, although just barely in one or two cases.

Eastern prices sank between a nickel and about a quarter Monday amid forecasts of unseasonably mild weather continuing into early November. Western losses tended to be small at a nickel or less and were mixed with upticks at several points as the region experienced both chilly weather from the Rockies through the Pacific Northwest and hot temperatures in California and the desert Southwest.

An industry leader in returns, financial strength and management, Exxon Mobil Corp.’s five-year volume growth at 5% will exceed investors’ 2-3% expectations, but growth acceleration likely will not be visible until 2005, JP Morgan said in a new research report, which lowered the Irving, TX-based major’s rating to “neutral” from “overweight” on Wednesday.

It wasn’t for a lack of trying, but in the end there was nothing bulls could do to keep natural gas futures prices from free-falling lower Monday. The combination of mild temperature forecasts, negative technical factors, and the continuation of an unimpressive tropical storm season was enough to place bears back at the market’s helm. September futures closed at $4.630, down 24.4 cents or 5% for the session.

A continuation of extreme heat in much of the West provided some rationale for Tuesday’s small upticks in that market area, but sources were generally at a loss to explain similar moderate firmness in the East. Actually the eastern gains tended to be slightly larger, although nearly all points were limited to single-digit increases and a few were flat to barely lower.

In a topsy-turvy trading session conspicuous only for its lack of bullish leadership, natural gas futures slipped lower Wednesday amid two waves of long liquidation. An early afternoon rally was about all the buyers could muster, and it was overshadowed by selling at the market’s open and again heading into its close. March finished at $5.785, down 19.2 cents for the session.

The draining of capital from the U.S. power industry needed to build new power plants and a lack of incentives from utility regulators to make better use of generation could lead to power shortages in certain parts of the country in the back half of this decade, an official with the Electric Power Supply Association (EPSA) warned on Friday.

A lack of cheap, easy drilling prospects, a succession of price shocks and industry consolidation are some of the main factors behind the downturn of natural gas production in North America, according to financial analyst Irene Haas.

A lack of cheap, easy drilling prospects, a succession of price shocks and industry consolidation are some of the main factors behind the downturn of natural gas production in North America, according to financial analyst Irene Haas.