Overhead

With a potential equity and energy interest in both, Pacific Gas and Electric Co. (PG&E) views major interstate natural gas pipeline and electric transmission projects in the Pacific Northwest as treading water, awaiting other key market and regulatory developments, according to PG&E Corp. CEO Peter Darbee, speaking on a conference call with financial analysts last Wednesday. For now, the projects are in what Darbee called the San Francisco-based combination utility’s “far-end guidance period” (2012-13).

After an initial push higher failed to break above overhead resistance, natural gas futures tumbled lower Wednesday as traders balanced their positions ahead of the most anticipated storage report in nearly a year, which is set to be released on Thursday at 10:30 a.m. EST. Except for a pause near noon EST, the selling pressure was steady throughout the session, pressing the prompt month down to support near the $6.10 level. February closed at $6.15, down 14.1 cents for the session.

After encountering heavy overhead selling above last Thursday’s $4.13 high, natural gas futures sunk lower Monday as traders took back early-session advances and demoted the market to its lowest level in more than a week. The July contract closed 4 cents weaker at $3.939, but comparatively, that was the good news for bulls. The rest of the summer strip slipped 4.1 cents and the winter strip sunk 5.4 cents. Keeping with the trend, the 12-month strip tumbling 5.4 cents as well.