Note

The U.S. oil — and natural gas — drilling rig count is beating expectations and more upside is likely, analysts with Raymond James & Associates Inc. said Monday.

September natural gas futures entered its final week of trading on a soft note, as traders suggested the market may move somewhat lower before numerous holders of short positions begin to cover and prompt an eventual market rally.

UBS AG has launched an exchange-traded note (ETN) listed on the New York Stock Exchange Arca (Archipelago Exchange) under ticker symbol “MLPG” that provides investors single-security exposure to the Alerian Natural Gas MLP (master limited partnership) Index, a midstream-focused subset of MLPs whose constituents earn the majority of their cash flow from the transportation, storage and processing of natural gas and natural gas liquids. The index provides exposure to the expansion of gas infrastructure, as well as the investment required to accommodate geographical supply shifts associated with shale gas development. The ETN will track the change in value of the Alerian Natural Gas MLP Index and pass on the corresponding distributions from the underlying companies as a quarterly coupon, net of fees.

The October aftermarket got going on a moderately bearish note Wednesday, but in nearly all cases the losses were quite a bit smaller than Tuesday’s September-ending quotes, which saw double-digit declines at all points. A bit of extra chill and the previous day’s gain of 4.5 cents in the first prompt-month trading by November futures may have helped spur increases at several points, mostly in the West, but weak weather fundamentals continued to deny increases in most of the East.

It’s not a question of “if” but rather “when” the market will see sub-$3/Mcf natural gas, Raymond James & Associates Inc. analysts said in a research note last week in which they took a bow for calling the bear market early and predicted more pain to come for gas producers.

It’s not a question of “if” but rather “when” the market will see sub-$3/Mcf natural gas, Raymond James & Associates Inc. analysts said in a Monday research note in which they took a bow for calling the bear market early and predicted more pain to come for gas producers.

Energy futures finished the week on an up note as some strength on Wall Street trickled through to most all commodities and colder weather began to seep into portions of the country. November crude gained $2 to close at $71.85/bbl while November natural gas finished at $6.786, up 8.3 cents from Thursday’s close and 25.3 cents higher than the previous week’s finish.

Natural gas futures finished the week on a weak note Friday despite another record run higher in neighboring crude futures. August natural gas closed Friday’s regular session at $11.904, down 39.6 cents from Thursday and $1.673 lower than the previous week’s finish.

April natural gas futures continued to grind higher as traders continued to note an overall bullish mentality to petroleum markets and a general unwillingness to sell. The April contract rose 1.1 cents to $10.011, and May settled 1.4 cents higher at $10.078. April crude oil continued its march higher adding $1.17 to $109.92 after trading as high as $110.20.