Positions

Natural gas futures were trading fast and furious Wednesday as traders worked to get their respective positions in order ahead of the October contract going off of the board. As a result, October natural gas plummeted to $4.070 — marking a new low for the extended move — before expiring at $4.201, down 32.5 cents on the day.

In an effort to lock in high commodity prices, Energen Corp. has increased its 2007 and 2008 hedge positions for natural gas, oil and natural gas liquids (NGL). The Birmingham, AL-based holding company said it sold New York Mercantile Exchange (Nymex) contracts and swaps on the output of its oil and natural gas development subsidiary Energen Resources Corp.

Following the long holiday weekend, traders on Monday wasted virtually no time getting their positions across as the December natural gas futures contract plummeted on its final day. After burrowing below the $11.030 support level (from Nov. 7) to record a trade at $10.880 just before 1:30 p.m. EST, the expiring prompt month rallied to go off the board at $11.180, down 44 cents for the day.

Shrugging off lingering technical bullishness, the natural gas futures market tumbled lower Thursday as traders adjusted their positions in reaction to slightly bearish supply news. Light trading volume at Nymex due to traders’ observance of Yom Kippur was seen as adding to the price volatility, with the November contract carving out a wide, 41-cent trading range. It closed for the session at $13.103, down 42.1 cents for the day.

Sparked by a rush from funds to cover their short positions, August natural gas futures on Tuesday morning exploded to the upside, notching a high trade of $8.10 as of 10:53 a.m. EDT. The prompt month slipped under the psychological $8.00 level in the afternoon, but still managed to finish strong on the day at $7.885, up 39 cents from Monday’s settle.

Enbridge Inc. last week completed its purchase of Shell Gas Transmission LLC (SGT) for $613 million plus associated working capital, which positions the Canadian company as a major player to develop gas supply and transport in the deepwater Gulf of Mexico.

Enbridge Inc. on Monday completed its purchase of Shell Gas Transmission LLC (SGT) for $613 million plus associated working capital, which positions the Canadian company as a major player to develop gas supply and transport in the deepwater Gulf of Mexico.

Canadian producers are signaling the Mackenzie Gas Project will trigger a wave of northern exploration and supply development if the pipeline proposal can be steered past aboriginal land-claims and into construction.

Canadian producers are signaling the Mackenzie Gas Project will trigger a wave of northern exploration and supply development if the pipeline proposal can be steered past aboriginal land-claims and into construction.