Predicted

Forecasters at the National Oceanic and Atmospheric Administration (NOAA) Thursday predicted that winter this year would be warmer than normal across the central part of the nation with dryer conditions to continue in the Southeast.

After numerous dress rehearsals during this 2008 Atlantic hurricane season, Hurricane Gustav’s predicted path could land the system squarely into the oil and natural gas patch of the Gulf of Mexico as a Category Three hurricane on Saturday or Sunday. The news was enough to light a fire under natural gas bulls, who pushed the September contract higher on Tuesday to close at $8.278, up 45.3 cents from Monday’s finish.

As it predicted last month, AGL Resources Inc.’s second quarter results took a hit from hedging losses as forward natural gas prices moved against the company’s program.

As it predicted last month, AGL Resources Inc.’s second quarter results took a hit from hedging losses as forward natural gas prices moved against the company’s program.

As a marketer had predicted the day before, cash prices dropped at nearly all points Friday. The softness was due to moderate weather conditions typical of a shoulder month being prevalent in most regions, Thursday’s nickel dip by May futures and the decline of industrial load during a weekend.

Warmer ocean waters could mean fewer Atlantic hurricanes striking the United States, according to new findings by climate scientists at the National Oceanic and Atmospheric Administration (NOAA).

Prices fell at most points Friday due to cool but relatively mild weekend weather being predicted across the southern third of the U.S., a small prior-day futures decline and the dropoff of industrial load over a weekend. Northeast citygates, forecast to see sub-freezing lows Saturday, realized gains of up to nearly 75 cents. Three flat points in the Midcontinent/Midwest also were exceptions to the overall softness.

As a marketer had predicted, prices were softer at a large majority of points Thursday due chiefly to a 35.4-cent plunge by the expiring December futures contract the day before and milder weather returning to the South. Northeast citygates, where temperatures are falling and will bottom out around freezing or lower Friday, saw nearly all of the flat to about 75 cents higher exceptions to the overall market trend.

EOG Resources Inc. CEO Mark Papa predicted Friday that natural gas prices in the second half of 2007 will be “disappointing” because of higher liquefied natural gas (LNG) imports and rising domestic production. To compensate, the Houston producer will hedge more of its production and sell some shallow gas holdings in Appalachia.