Modest

March natural gas futures rose in modest trading Tuesday as short-term traders anticipated some additional short-covering ahead of Thursday’s inventory report and longer-term analysts suggest that selling has run its course and recommend purchases of the April contact on dips. At the closing bell March natural gas was up 5.1 cents to $3.976 and April had gained 3.9 cents to $4.030. March crude oil fell 49 cents to $84.32/bbl.

March natural gas futures managed a modest gain Monday as traders cited market moves reflecting largely bookkeeping and rolling of positions from one month to the next. There was little in the way of new fundamental information, and traders suggested that short-term support areas were safe for the moment. At the close March natural gas was up 1.5 cents to $3.925 and April added 1.4 cents to $3.991. March crude oil continued its losing ways, posting a decline of 77 cents to $84.81/bbl.

The growing abundance of shale gas and liquids production is leading to a “paradigm shift” in the global oilfield services industry that should lead to business growth over the next two years, especially in the U.S. land market, FBR Capital analysts said in a new report.

Former natural gas industry executive Sheffield Nelson has filed a ballot initiative in Arkansas to raise the state’s severance tax on natural gas production to 7% from the current 5% of market value.

The cash market largely shrugged off a prior-day drops of 3 cents by futures and some continuing trends toward milder weather in rising at a modest majority of points Wednesday.

December natural gas futures managed a small gain Monday as some traders attributed favorable weather forecasts to giving the market a modest lift. December futures rose 4.6 cents to $3.845 and January also added 4.6 cents to settle at $4.028. December crude oil eased 2 cents to $84.86/bbl.

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.

Being closer to a major market area means cheaper transport, right? Marcellus Shale producers are benefiting from that self-evident axiom, but there is some question about their relative lack of gathering/processing infrastructure compared to such areas as the Gulf Coast and Midcontinent hindering them from realizing maximum value for their gas.