While gasoline prices are headed towards a perilously high level, Obama administration officials Monday delivered to President Obama a report that was relatively rosy about the progress the country has made in the past year on the energy front.
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Southern Union Co. said its Southern Union Gas Services (SUGS) midstream business will construct a 200 MMcf/d gas processing plant and associated gathering, compression and treating facilities to serve growing production from the Avalon, Bone Spring and Wolfcamp plays of West Texas and Southeast New Mexico.
After probing perilously close to a technical cliff at the $4.55 level Tuesday, the natural gas futures market worked its way quietly higher Wednesday as traders appeared reluctant to be short heading into another potentially bullish storage report Thursday. By virtue its higher-high, higher-low, 5.5-cent gain and $4.694 close, the October contract was able to post a positive day on the charts, potentially paving the way for more upward consolidation following the 10:30 a.m. ET inventory release.
Natural gas futures dropped lower at the open Tuesday as traders returned from the holiday weekend to a less than supportive fundamental outlook. In addition to the milder temperatures expected in September, weather forecasters also played music to bears’ ears by predicting that Hurricane Fabian poses more of a threat to New England than to the Gulf Coast states. The October contract was hit heaviest by the selling, dropping 9.2 cents to close at $4.639. At 63,392, estimated volume was moderate.
Amid a heavy round of market-on-close commercial selling, natural gas futures dropped perilously close to new 34-month prompt-month lows yesterday as traders — armed with the knowledge that temperatures are well-above normal across much of the East — gained confidence that there would not be a short-covering rally until after the February contract goes off the board Tuesday. With that, February completed its penultimate trading session at $1.908, down 12.9 cents for the session.