Level

After blasting to a price level not seen in the nearly 13-year trading history of natural gas futures, the March 2003 contract sifted lower Tuesday in another session marked by hyper-volatility and 20+ cent bid-ask spreads. March futures closed at $9.577, up 44 cents for the day, but down almost $2.50 from its new all-time high at $11.899.

Brought lower due in part to a “major divestiture program” in its exploration and production portfolio, ConocoPhillips posted proved reserves of 7.8 billion boe at year-end 2002, down approximately 600 million boe from results at the end of 2001, which were 8.4 billion boe.

Brought lower due in part to a “major divestiture program” in its exploration and production portfolio, ConocoPhillips posted proved reserves of 7.8 billion boe at year-end 2002, down approximately 600 million boe from results at the end of 2001, which were 8.4 billion boe.

Despite projecting Thursday morning that linepack would be below its minimum target level Friday, Pacific Gas & Electric did not extend a low-inventory OFO beyond Thursday.

The current level of volatility in the natural gas futures has some traders wondering if all that has happened is that one form of weather-induced volatility has been traded for another form or price hyperactivity.

Much like on Tuesday, most of the cash market tended to level off Thursday. Unlike Tuesday’s trading that brought an upturn largely to a halt, however, Thursday’s numbers arrested a price slide. With a modest bias to the downside, nearly all points ranged from flat to up or down about a nickel Thursday. Only San Juan-Blanco’s drop of about a dime broke the overall price mold.

Although as of Thursday morning it was still projecting linepack volumes above its maximum target level for Friday and Saturday, Pacific Gas & Electric did not extend a high-inventory OFO beyond Thursday.

Monday’s huge surge of cash bullishness came to a near-standstill Tuesday, and several NGI sources indicated they expect a gradual price slide to begin Wednesday. Other than moderate increases in the Northeast, Rockies/Pacific Northwest and California and stronger gains in Western Canada, most points were flat to less than a nickel higher Tuesday (a few scattered small declines also were part of the mix).

TXU Europe Ltd. and its European subsidiaries was downgraded to one level above “junk” status Thursday by Standard & Poor’s Ratings Services (S&P), which may drop the TXU Corp. subsidiary below investment grade “in the very near future.” S&P’s action followed that by Moody’s Ratings Service on Wednesday and Fitch Ratings last Friday. S&P did not drop the corporation’s credit rating, however.