A few points again were flat to moderately higher going into the weekend, but the cash market largely repeated Thursday’s activity in recording mostly substantial declines at a large majority of locations Friday. The usual weekend drop of industrial demand and some doubt about whether the latest bout of winter-like weather would last long enough and be severe enough to put much of a dent in lingering storage surpluses over year-ago and five-year average levels apparently were responsible for many traders’ bearish moods.
Articles from Moderately
Although there were a few more flat to moderately higher quotes than on Friday, a holiday-shortened trading week opened Monday much as the previous one had ended Friday: with losses at a large majority of locations. However, in a slightly bullish sign several of the gains had gotten significantly larger, and most of the losses had shrunk to single digits instead of the double-digit drops that were so prevalent Friday.
October natural gas rose moderately Tuesday as uneventful options trading expired and analysts wondered how much longer drilling can continue under current conditions. October gained 4.5 cents to $3.827 and November rose 3.0 cents to $3.875. November crude oil streaked higher $4.21 to $84.45/bbl in a fit of euro-centric optimism.
August natural gas retreated moderately Tuesday, but risk managers don’t see any change in the overall market landscape and suggest that a severe storm may be required to change client’s risk assessments. At the close August had eased 1.3 cents to $4.533 and September had fallen 1.3 cents as well to $4.511. August crude oil rose $1.57 to $97.50/bbl.
Getting an assist from the screen, moderately hot forecasts for much of the East and desert Southwest along with a patch of cold in the Rockies caused cash quotes to be flat to up by mostly small amounts at a large majority of points Thursday.
June natural gas futures fell hard Thursday as a double whammy of a moderately negative inventory report combined with a broad market downdraft in equities and other commodity markets to pummel prices. At the close June had fallen 31.6 cents to $4.261 and July was similarly lower by 31.3 cents to $4.331.
Except for a sizeable number of flat to moderately higher locations in the West — where a cooling trend is taking overnight lows in the Rockies and Upper Plains back to either side of freezing — and elsewhere, Tuesday’s overall firmness didn’t last. Most of the cash market fell Wednesday due to a combination of a dearth of eastern weather-based load — in the form of either heat or substantive cold — and three successive previous days of futures weakness.
Due to moderately higher fuel prices and anticipated milder weather for the upcoming heating season, only a modest rise in household heating bills is expected for many U.S. customers this winter, according to the Short-Term and Winter Fuels Energy Outlook released by the Energy Information Administration (EIA) last Wednesday.
Due to moderately higher fuel prices and anticipated milder weather for the upcoming heating season, only a modest rise in household heating bills is expected for many U.S. customers this winter, according to the Short-Term and Winter Fuels Energy Outlook released by the Energy Information Administration (EIA) Wednesday.
Moderately cool remained the weather watchwords for most of the U.S. and Canada, yet even with a second preceding day of futures weakness cash prices continued to stave off any substantive declines Thursday.