Losses

Stemming a string of expiration-day losses at six, natural gas futures eked out a slim gain Friday as traders covered shorts ahead of the weekend and in anticipation of hot weather forecast for this week. The August contract went off the board without much fanfare, up 3.9 cents for the session and 21.2 cents for the week, but down 11.9 cents since it became the prompt contract back on June 27. Estimated volume was modest for an expiration day, with just 92,001 contracts changing hands.

Kerr-McGee Corp. cited the “continued slowdown in the U.S. and worldwide economies” and lower oil and gas production as reasons that its second quarter net income was down 19%, standing at $175 million, or $1.71 per diluted share, compared with $217 million, or $2.13 per share for the same period of 2000. Last year’s second quarter included $107 million, or $1.02 per share, in special charges. No special charges were recorded for this year’s second quarter.

Extending Friday’s losses, natural gas futures continued lower yesterday, as traders were greeted back from the weekend to a trading landscape devoid of anything resembling bullish news. Prices wasted little time in reflecting the negative sentiment, gapping lower at the open for the second session in a row before finding support just above the $3.00 level. The August contract notched its lowest closing price since May of 2000, slipping 18.2 cents to $3.068.

In a session that had a little for both bull and bear, natural gas futures spiraled higher early Thursday only to crash lower late in the day as traders were finally successful breaking beneath support. In doing so the prompt contract slipped 5.9 cents lower to close at $4.054.

Sixteen years, a complete reorganization and a string of losses later,Canada’s biggest natural gas transporter has decided to follow a recommendation by the nation’s top economists to stop trying to also be the top marketer.

Adding to losses that began in the Sunday evening/Monday morning Access trading session, natural gas futures accelerated lower Monday as traders continued to price in the impact of seemingly plentiful supply in a market that is lacking a strong demand component. At the closing bell, the prompt June contract was 25.1 cents lower at $4.239. The July contract followed suit, also tumbling 25.1 cents to close at $4.314.

After gapping lower at the open, natural gas futures tumbled lower for the third day in a row and the sixth out of seven sessions as traders tested the bottom end of the market’s eight-week trading range. However, when the dust had settled and the orders counted at Nymex, it was clear that support had held, leaving traders slightly bullish heading into today’s expiration. On its penultimate day, the May contract closed 9.7 cents lower at $4.981, about 42 cents below where it was when it began its tenure as prompt month.

Amid stronger cash market prices and another round of blackoutsin California, natural gas prices finished on a positive note forthe third session in a row Monday, as traders covered shorts in anotherwise quiet day. April finished 2.8 cents better at $5.063.

With little in the way of fresh fundamental or technicalimpetuous, natural gas futures were quiet in an abbreviatedpre-holiday trading session Friday, giving traders a moment tofocus on the next price move. Just about dead center of its$5.45-67 trading range, the March contract’s $5.568 close was 2.6cents lower for the session and 64.2 cents lower for the week.