Modest

Reality suggests that even with a “modest” decline in the U.S. natural gas rig count in 2012, structural drivers should “more than offset” the drop and gas supply growth even may accelerate over the coming year, the energy team with Raymond James & Associates Inc. said late Monday.

September natural gas managed a modest gain Wednesday as traders positioned themselves ahead of the weekly inventory report. For every trader anxious to cover a short position there seemed to be another willing initiate a new sale. At the close September had risen nine-tenths of a cent to $4.003 and October added nine-tenths of a cent as well to $4.024. September crude oil rebounded from steep losses in the last two sessions, adding $3.59 to $82.89/bbl.

Prices were in modest rally mode at a large majority of points Wednesday as heat levels began to trend upward again in key northern market areas and what had previously appeared to be a benign tropical wave south of Cuba was designated as Tropical Storm Don in the afternoon as it headed into the Gulf of Mexico.

Natural gas growth potential and prospects for continued modest prices were talked up to a group of state regulatory commissioners meeting in Los Angeles last week, following keynote addresses earlier in the day touting gas and all of its traditional and renewable competitors.

Natural gas growth potential and prospects for continued modest prices were talked up to a group of state regulatory commissioners meeting in Los Angeles Monday, following keynote addresses earlier in the day touting gas and all of its traditional and renewable competitors.

Small declines were still in a modest majority Thursday in a market that saw no changes of more than a nickel or so either up or down at any location. The flat to slightly higher quotes were chiefly due to some growth of cooling demand in the Northeast and South along with the previous day’s rise of 3.4 cents by June futures.

With both tight gas sands and oil shale development emerging in the state, a California legislator has introduced a bill (AB 591) seeking to require public disclosure of any chemicals used in oil/gas hydraulic fracturing (fracking).

Natural gas futures carved out a modest gain Wednesday as aggressive fund trading managed to prevail over short-term traders looking to sell the market lower. At the close May had gained 4.3 cents to $4.141 and June was up 3.8 cents to $4.206. May crude oil added 86 cents to $107.11/bbl.

April futures were confined to a narrow range Friday but managed to eke out a modest gain. The massive earthquake in Japan found its way into crude oil and natural gas trading, and the unwinding of long crude oil and short natural gas positions prompted a firm tone to the market.