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Cash prices around much of the country on Monday rose about a dime, excluding double-digit losses posted at a number of eastern points. Traders ascribed the gains primarily to an early surge in March futures. However, the late session futures decline should result in lower cash quotes Tuesday.

Cash markets out West and at most points throughout the country posted healthy gains as an early announcement by Chesapeake Energy that they would shut in wells and cut back drilling (see related story) boosted quotes across the board with the exception of a few New England and Eastern Seaboard points. Futures responded in kind on heavy trading volume, yet traders were circumspect about whether the market was ready to completely put the brakes on its pervasive downtrend.

February natural gas closed modestly higher Tuesday as prices generally ignored soaring oil and equity markets and posted an ominous new low during the session. Traders suggested that further price declines were likely. At the close February had risen 0.4 cent to $2.993 and March had inched higher 0.6 cent to $3.022. February crude oil bounded higher by $4.13 to $102.96/bbl.

Natural gas futures posted a nominal gain Thursday following the release of government storage figures showing a greater withdrawal than the market was expecting. The Energy Information Administration (EIA) reported natural gas inventories fell by 20 Bcf for the week ended Dec. 2, much greater than estimates centered closer to 9 Bcf. At the close January had added 3.6 cents to $3.457, and February had risen by 2.8 cents to $3.486. January crude oil tumbled $2.15 to $98.34/bbl as oil markets elected to follow slumping equity markets. The Dow Jones Industrial Average fell 199 points to 11,998.

January natural gas futures posted a double-digit loss Monday as traders acknowledged a low volatility price environment and little incentive for end-users to step up to the plate and lock in prices. At the close January was down 12.3 cents to $3.461 and February also had shed 12.3 cents to $3.490.

Expiring December natural gas futures posted a double-digit loss as traders elected to focus on an incoherent weather outlook and adjust positions as the deadline for December trading approached. At the close December had fallen 17.8 cents to $3.364 and January had skidded 14.0 cents to $3.525. January crude oil gained a stout $1.44 to $98.21/bbl.

EXCO Resources Inc. saw record net production volumes during 3Q2011, helped in large part by strong results in the Haynesville/Bossier shale play in Louisiana and Texas and growing momentum in the Marcellus Shale, where it is seeking additional acreage.

A frequent customer of Enterprise Products Partners LP in several shale play infrastructure projects, Chesapeake Energy Corp. has stepped up to be the anchor shipper on the partnership’s proposed pipeline to carry ethane from the Marcellus and Utica shales to the U.S. Gulf Coast.

November natural gas posted a double-digit loss Tuesday as traders cited the relentless increase in production and lack of demand growth as continuing to thwart any price advance. At the end of the day November had fallen 13.5 cents to $3.553 and December had shed 11.5 cents to $3.788. November crude oil rose $1.96 to $88.34/bbl.