The May Nymex contract continued to slowly rebound from itsmassive price downturn on Monday by closing Wednesday up another2.0 cents at $2.521. Trading was held to an extremely tight range,as the spot month could only post a high of $2.555. Total volumewas estimated at 255,671 contracts.
Monday
Articles from Monday
Pena to Resign from DOE; Moler Eyed as Successor
With his family in tow, Energy Secretary Federico Pena announcedMonday he plans to leave the Department of Energy (DOE) forpersonal and family reasons effective June 30th, the news of whichelicited ho-hum reactions from the natural gas industry and spurredspeculation that Deputy Energy Secretary Elizabeth Moler willsucceed him.
May Futures Trading Starts The Week On a Slow Note
The May Nymex contract nudged 2.1 cents lower to $2.535 Mondayamid a session marked by a relatively light total estimated volumefigure of just over 30,000 contracts. “Many traders are waiting fordirection from the cash market, and since that hardly moved today,it makes sense futures hardly budged either,” an analyst told GPI.
Early Dose of Summer Sends May Futures Above $2.40
The May Nymex contract rallied 5.7 cents to settle Monday at$2.409, thanks to what sources said was good peak demand buying inthe physical market. “There was definitely some peak airconditioning demand in Texas today, and that’s exactly where youwant to see it to influence natural gas prices,” one of the sourcessaid. Buoyed by that strength, May had no problem rising from itsopening trade of $2.345, which also turned out to be its low pricefor the day.
Cumberland Holding Open Season
Cumberland Gas Pipeline Co., a general partnership of Williamsand AGL resources subsidiaries, is holding an open season for firmcapacity that started Monday and runs to May 29. The 141-mileCumberland Pipeline will initially consist of existing pipelineinfrastructure created by combining the 27-mile Suwanee lateral onWilliams’ Transco pipeline and Atlanta Gas Light’s 102-milemainline. The pipeline will run from the Transco mainline in WaltonCounty, GA, to Atlanta Gas Light’s interconnect with East TennesseeNatural Gas Co. in Catoosa County, GA. New facilities are expectedto be expanded north into Tennessee.
Bullish Futures Momentum Runs Out of Steam
The recent surge in natural gas futures prices became so greaton Monday that the spot April contract came within 4 cents ofreaching its all-time high trade of $2.460. However, speculatorswere quick to “pounce on a selling opportunity” at that price, theresult of which left April up just 0.8 cents for the day at $2.351.Total volume was estimated at 88,053 contracts.
April Futures are Home in Their Range
The April NYMEX contract gained a meager 1.8 cents to $2.155 onMonday, as traders continue to hold the spot month to a tighttechnical trading range. The bottom of that range was confirmedwhen April bounced off major support at $2.105. Despite the narrowtrading band, estimated volume still managed to reach 33,502 totalcontracts.
Futures Price Follow Cash Quotes Higher
For a change, fundamentals actually seemed to be behind pricemovements at the New York Mercantile Exchange on Monday. The spotApril contract gained 4.0 cents to $2.169 yesterday, as a blast ofwinter temperatures propelled cash market prices up 5-10 centsacross much of the country.
Testimony Begins on AGL’s Competition Plan
Atlanta Gas Light (AGL) Monday began testimony before theGeorgia Public Service Commission (PSC), seeking approval for itsunbundling plan that would give more than 1.4 million customerssupplier choice. AGL’s proposal follows the guidelines of theNatural Gas Competition and Deregulation Act signed into law byGeorgia Governor Zell Miller last April.
Spot Prices Falter; Trade Down to Bidweek Levels
March prices, which had roared off to a strong start on Monday,filtered lower Tuesday leaving traders wondering if March wouldfollow the weather adage and trade out like a lamb. Cash priceswere slipping anywhere from a couple cents to nearly a dime Tuesdayin most markets. In doing so, many spot points achieved in Marchwhat they were unable to do the entire month of February: tradebelow index. Rockies gas, however, remained in high demand, immuneto the overall losses.