What is expected to be a short-lived midweek return of colder temperatures in the Midwest and Rockies helped several points rally Tuesday from Monday’s overall softness. The cash market remained weak for the most part, however, as the continuation of a warming trend in the Northeast and largely static mild conditions in the South kept heating load minimal for mid-March.
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Waning Cold Weather Causes Softness at Most Points
The latest blast of winter cold in much of the East is proving to be short-lived, and so are the two days of price firmness that it caused. Numbers dropped at nearly all points Thursday as a warming trend was forecast for the Midwest and cold temperatures were due to ease slightly in the Northeast. While colder conditions would continue spreading in the South Friday, they weren’t enough to offset the decline of heating load in more northerly climes.
New Futures Low Has Some Traders Scratching Their Heads
Apparently convinced that the current frigid temperatures will be short-lived, natural gas bears came out in force Tuesday to record a new front-month natural gas futures low for the current down move. February futures penetrated the old prompt-month low of $5.210 recorded on Dec. 22 to put in a $5.158 tick before closing out Tuesday’s regular session at $5.184, down an astounding 35.8 cents from Monday’s close.
Futures Sink on Smaller than Expected 67 Bcf Storage Pull
Wednesday’s rebound in natural gas futures values proved short-lived after the Energy Information Administration (EIA) reported Thursday morning that only 67 Bcf was removed from underground storage for the week ended Dec. 5. The January natural gas futures contract responded bearishly to the report in morning trade before closing at $5.598, down 8.8 cents from Wednesday’s close.
More Discouraging Words for U.S. Gas Drillers
The natural gas industry has faced tight credit markets before and lived with low prices, but never so forcefully at the same time. As a result, the outlook for drilling in the coming year is dicey at best, and the pullback in rigs will accelerate through 2009, Barclays Capital analysts noted in a report.
More Discouraging Words for U.S. Gas Drillers
The natural gas industry has faced tight credit markets before and lived with low prices, but never so forcefully at the same time. As a result, the outlook for drilling in the coming year is dicey at best, and the pullback in rigs will accelerate through 2009, Barclays Capital analysts noted in a report.
Boost in Heating Load Rallies Most Points
Based on the season’s first burst of truly robust heading load in many areas, which is expected to be short-lived, most points were able to rally Monday. The restoration of industrial demand following a weekend also contributed to the overall firmness, which occurred despite Friday’s 18-cent drop by October futures.
WSI Forecasts: Heat in the East; Nine Hurricanes This Year
Warmer-than-normal temperatures will settle in over the Northeast and North Central regions in August and remain there through October, while the western United States will see cooler-than-normal air taking over in September and October, according to forecaster WSI Corp. of Andover, MA. WSI also increased by one the number of named storms and hurricanes that it predicts will form in the Atlantic Basin this year.
Quicksilver Agrees to Buy Barnett Shale Assets for $1.3B
Fort Worth, TX-based producer Quicksilver Resources Inc. last Monday said it agreed to purchase producing, leasehold, royalty and midstream assets associated with the Barnett Shale formation in the Dallas/Fort Worth Metroplex area for $1.307 billion in cash and stock from various private parties, including Chief Resources LLC, Hillwood Oil & Gas LP and Collins and Young LLC.
Weekend Prices Decline at Majority of Points
As a couple of producers had expected (see Daily GPI, May 9), softness dominated the cash market Friday. A cooling trend in the Northeast proved to be short-lived, and while weather-based demand was growing a bit here and there, the overall temperature picture remained fairly moderate. A 6.4-cent futures loss the day before and the drop of industrial load during a weekend contributed to the general bearishness.