Prompt

After dropping 18.1 cents on Monday, the natural gas futures prompt month on Tuesday chose to follow crude’s lead and probe the upside. With only a few days left until expiration, the July contract notched a 7.3-cent gain to close at $6.412. Action was light Tuesday, as 52,035 contracts changed hands.

After dropping to a low on the day of $6.58 in early trading, the June natural gas futures contract, in its last day as the prompt month, pulled itself back up during the afternoon to close at $6.680, down $0.004 for the day. The July contract closed at $6.732, down $0.008. About 88,586 contracts changed hands.

More than one trader was surprised to see cash prices generally holding firm Thursday, defying the greater than usual industrial load slump associated with a three-day holiday weekend. Forecasts of a cold front bringing winter-like chills again to the central U.S. and the strength of energy futures Wednesday and Thursday were cited as the chief reasons in the continued rally at most non-western points.

On their first day as prompt contract at Nymex, September natural gas futures had a little something for both bull and bear. While keeping the downtrend intact by notching another lower-low on the daily chart, the contract managed to post a gain for the session — something the August contract failed to do in each of its last three trading days. September finished at $4.668 Wednesday, up 3 cents from Tuesday’s close. At 49,012, daily trading volume has shrunk as it typically does in the middle of summer.

The Wyoming Natural Gas Pipeline Authority has called on FERC to expeditiously approve the proposed Cheyenne Plains Pipeline that would connect Rocky Mountain natural gas with eastern markets, “as well as any other pipelines seeking approval to build or enhance capacity out of Wyoming and the Rocky Mountain region.”

The Wyoming Natural Gas Pipeline Authority has called on FERC to expeditiously approve the proposed Cheyenne Plains Pipeline that would connect Rocky Mountain natural gas with eastern markets, “as well as any other pipelines seeking approval to build or enhance capacity out of Wyoming and the Rocky Mountain region.”

A dwindling number of attractive drilling targets in the United States and a tough financial environment were the leading reasons exploration and production (E&P) companies said they planned to spend less next year in the United States, according to an annual survey by Lehman Brothers.

Riding the wave of a decidedly bullish storage report and a prompt-month futures contracts that settled above $5.00 on the previous day for the first time since late April 2001, prices wound up an already strong week with further advances at most points Friday. Only San Juan/Rockies numbers, which have frequently moved contrary to the overall market in recent weeks, succumbed to weekend softening.

Increasing financial risk in the energy trading business has prompted Natural Gas Exchange (NGX) to move to a fully collateralized gas commodity clearinghouse on July 1. The move is designed to ensure the integrity and security of exchange and clearing operations. NGX will require all parties to post collateral in the form of cash margin or a letter of credit.