Prompt

As prompt-month natural gas futures prices continue to threaten their all-time record regular session high of $10.10, the only thing that remains fairly certain when looking at the entire natural gas complex is that prices will continue to be relatively high and volatile.

As the prompt month settlement price for natural gas reached a record level this week at $9.984/Mcf, the head of a municipal gas distribution group on Thursday called on the Senate Energy and Natural Resources Committee to immediately turn its attention to escalating natural gas prices when it returns from its August recess after Labor Day.

With $10 locked in their sights, natural gas bulls made it look easy Friday as they propelled the prompt natural gas contract to price levels seen on only a few brief occasions in the market’s 15-year history. After notching new 30-month highs Thursday, the September contract was fast out of the chute Friday as spiking crude oil prices prompted a wave of natural gas short-covering that drove prices to a high of $9.91 just before noon EDT.

The New York Mercantile Exchange (Nymex) and ICAP plan to launch on July 18 an electronic market in same-day over-the-counter (OTC) options on prompt-month Nymex futures settlement prices for crude oil and natural gas.

In its debut as Nymex prompt month, the July natural gas futures contract was a bull’s dream Friday as it surged higher to nearly erase losses suffered in sympathy with Thursday’s expiration-day June contract liquidation. A combination of speculative short-covering and end-user buying were cited as factors in the rally that propelled July up 15.8 cents to $6.370 Friday, two ticks shy of Wednesday’s $6.372 close. On Thursday, the June contract tumbled 19.2 cents to go off the board at $6.123.

After testing higher in the morning, May natural gas futures used Monday afternoon to feel its way lower. However, the prompt month was rebuffed by the $6.87 to $6.89 level for the second time in three days, leading May futures to crawl higher to a $6.95 settle, down 4.7 cents.

After hitting its head on a $7.85 ceiling Monday, May natural gas futures used the afternoon to probe for support. The prompt month ended the day down 15.5 cents at $7.594, just a few cents shy of Monday’s $7.56 low.

After trading lower in the morning to stake out a $7.10 low Monday, April natural gas futures began to dig themselves out of the basement in the afternoon. The prompt month settled at $7.318, up 4.5 cents on the day and just 2.2 cents off the session’s high.

After breaking through the $6.84 top of its range in Tuesday trading, April natural gas futures on Wednesday showed no signs of retreat. The prompt month carved out a high of $6.973 in the overnight Nymex Access session and started Wednesday’s regular session trading at $6.95.