Overall

The horizontal natural gas drilling boom drove a long production growth period, but that boom topped out in September 2011, and overall monthly production has remained basically flat since then, analysts at Stephen Smith Energy Associates said in their most recent Monthly Energy Outlook. And while the number of horizontal gas rigs has fallen about 70% from its peak, several effects have worked to maintain the 18-month production plateau, they said.

The horizontal natural gas drilling boom drove a long production growth period, but that boom topped out in September 2011, and overall monthly production has remained basically flat since then, analysts at Stephen Smith Energy Associates said in their most recent Monthly Energy Outlook. And while the number of horizontal gas rigs has fallen about 70% from its peak, several effects have worked to maintain the 18-month production plateau, they said.

Cash prices eased 4 cents overall Tuesday with pronounced weakness seen at Northeast points as well as the Midcontinent. Gulf points were mostly steady. At the close of uninspired futures trading, July had added 0.7 cent to $3.998 and August had managed to rise by 0.6 cent to $4.015. July crude oil slipped 14 cents to $93.31/bbl.

Overall natural gas cash prices rose by 5 cents on average Wednesday as quotes were boosted by soaring eastern power prices and underlying forecasts of temperatures as much as 20 degrees above normal. Dollar-plus gains occurred at Northeast points and in the Mid-Atlantic, prices were well bid as well. Great Lakes and Midwest points were also firm. At expiration June futures had limped off the board losing 2.6 cents to $4.155, and July fell 4.0 cents to $4.184. July crude oil lost $1.88 to $93.13/bbl.

Physical natural gas prices overall added 4 cents Tuesday as bidweek trading got into full swing. Traders saw most resorting to historical purchases and sales of bidweek volumes with no one trying to buy or sell index based on expected market direction. Eastern and Northeast points led the day’s advance, but most market points were steady to slightly higher, and only a few reported losses. At the close of futures trading, June had skidded 6.3 cents to $4.174 and July was off 6.0 cents to $4.224. July crude oil added 86 cents to $95.01/bbl.

Physical gas prices overall for the extended holiday weekend fell 3 cents, with double-digit losses posted at California points and losses in place at eastern and Midwest locations as well. About two-dozen points scored gains. Futures prices eased as well, and at the close June had lost 2.4 cents to $4.237 and July was off 2.3 cents to $4.284. July crude oil fell 10 cents to $94.15/bbl.

Natural gas cash prices overall added just a half-cent Wednesday as temperatures were forecast to take a dive over the next several days. Midwest and Great Lakes points were higher by a couple of pennies, but Northeast and eastern locations eased. At the close of trading, June futures had fallen 0.6 cent to $4.186 and July was off 0.6 cent as well to $4.233. July crude oil tumbled $1.90 to $94.28/bbl.

Cash natural gas prices vaulted 24 cents higher overall on Monday on supportive weather forecasts in several key market areas. Just as the market on Friday priced in the double-digit futures loss on Thursday, Monday’s trading was faced with the task of acknowledging the screen’s 12-cent jump Friday. The Mid-Atlantic region posted gains of close to 40 cents, but Southern California, Gulf, Midcontinent and Rockies points all enjoyed exuberant pricing. At the close of futures trading, June had risen 3.5 cents to $4.090, and July was up 3.8 cents to $4.141. June crude oil added 69 cents to $96.71/bbl.

Physical gas prices for weekend and Monday delivery overall fell 12 cents Friday as cash market traders played catch-up with Thursday’s 14-cent futures losses.