Prevailing

June natural gas futures rose Tuesday as analysts saw the gain as consistent with movement within the market’s prevailing price parameters. Prices may take some guidance from the oil markets during a time when weather-driven fundamentals have minimal market-moving capability. At the close June had gained 9.2 cents to $4.246 and July added 8.7 cents to $4.303. June crude oil continued its journey higher rising $1.33 to $103.88/bbl.

With a modest Northeast heat wave due to retreat, moderate to cool temperatures prevailing in most other areas and no tropical storm threat to offshore production in sight, prices fell at a large majority of points Wednesday. Flat to a little more than a dime higher quotes, concentrated in the Rockies and Pacific Northwest, brought a return of mixed price movement to the cash market.

The cash market appeared to be slipping into a holding pattern Wednesday with close-to-flat prices prevailing at virtually all points. Only a few points, nearly all in the West, saw prices move by a dime or more. Flat quotes were common in a market that was approximately evenly divided among losses of up to about 15 cents and gains that also ran as high as about 15 cents (Questar was an exception with an increase of about 30 cents).

The cash market finally made it unanimous. Following four days in which a few points had run counter to the prevailing trend up or down each day, all prices were moving in the same direction Friday — way down. The major softening had been predictable in light of the screen’s dive of nearly 81 cents Thursday and forecasts of moderate to cool temperatures in most areas for the weekend.

Canadian producers, prodded by strong demand and their inability to catch up by sticking to prevailing methods, show signs of at last adding dimensions in exploration and unconventional development to their natural gas supply strategies.

Canadian producers, prodded by strong demand and their inability to catch up by sticking to prevailing methods, show signs of at last adding dimensions in exploration and unconventional development to their natural gas supply strategies.

Sierra Pacific Resources and subsidiary Nevada Power filed a lawsuit Monday against El Paso, Sempra Energy and Dynegy, charging the companies and Enron conspired to restrict pipeline capacity and gas supplies and made false price reports in order to drive up prices. The lawsuit, filed in U.S. District Court in Las Vegas seeking $600 million in damages, alleges the companies engaged in restraint of trade, fraud, violation of Nevada’s RICO Act and civil conspiracy.

With little fanfare and against a prevailing perception that private sector energy firms are looking warily at the West, Michigan-based CMS Energy last Wednesday announced it is opening a San Francisco office for its marketing, services and trading businesses, with a new director of western marketing operations, Laird Dyer, who was formerly with Enron and Pacific Gas Transmission in San Francisco.

With little fanfare and against a prevailing perception that private sector energy firms are looking warily at the West, Michigan-based CMS Energy last Wednesday announced it is opening a San Francisco office for its marketing, services and trading businesses, with a new director of western marketing operations, Laird Dyer, who was formerly with Enron and Pacific Gas Transmission in San Francisco.