Lofty

The natural gas market made it four in a row Thursday as prior-day screen support and chilly temperatures in a number of regions around the country led to cash point increases at a vast majority of locations.

Although Northeast citygates were descending rapidly from the lofty heights they had reached in pre-weekend trading, most of the market continued to rise Monday as a widespread snowstorm continued to envelop the Midwest, Northeast and even the northern reaches of the South. The general firmness also was supported by the previous Friday’s 9.9-cent increase by March futures and the return of industrial load from its normal weekend hiatus.

Although Northeast citygates were descending rapidly from the lofty heights they had reached in pre-weekend trading, most of the market continued to rise Monday as a widespread snowstorm continued to envelop the Midwest, Northeast and even the northern reaches of the South. The general firmness also was supported by the previous Friday’s 9.9-cent increase by March futures and the return of industrial load from its normal weekend hiatus.

While July natural gas futures recorded lofty gains of their own, the commodity on Friday once again took a back seat to big brother crude, which saw the July futures contract gain an astounding $10.75 to close out the day’s regular session at a record $138.54/bbl. July natural gas continued to hone in on the $13/MMBtu price level by gaining 17.4 cents Friday to close at $12.693, up 99 cents from the contract’s finish in the previous week.

Despite natural gas storage levels sitting near record highs, natural gas futures prices remain lofty compared to past years, likely due to elevated petroleum prices and fear-based premiums attached to the upcoming hurricane season.

As natural gas prices continue to maintain their lofty levels, industries that use the commodity as a feedstock are finding it increasingly more difficult to conduct business as usual. As one of the largest energy users in Ohio, steel producers in the state said Thursday that they have grave concerns over natural gas prices, which have increased 400% in five years. In the most recent price run-up, the steel companies say that natural gas costs per ton of steel produced have tripled.

Terra Industries Inc. last Monday said it has mothballed its Donaldsonville, LA, ammonia manufacturing plant indefinitely due to the lofty prices for natural gas, which is used as a feedstock in the production process. The facility, which had an annual production capacity of 500,000 tons, has been out of service since last December.

Terra Industries Inc. on Monday said it has mothballed its Donaldsonville, LA, ammonia manufacturing plant indefinitely due to the lofty prices for natural gas, which is used as a feedstock in the production process. The facility, which had an annual production capacity of 500,000 tons, has been out of service since last December.

With natural gas prices continuing to remain lofty, Americans should prepare themselves for higher utility bills this winter heating season, according to a new survey conducted by NUS Consulting Group. The annual survey found that the average price of natural gas nationwide increased by 4.3% from the period of September 2003 to September 2004.