Propels

Calgary-based Shell Canada Ltd., a unit of Royal Dutch/Shell Group, reported a record 73% earnings increase in the first three months of 2004 on high prices and a strong contribution from its Athabasca Oil Sands Project, which was in start-up mode a year ago.

Natural gas futures vaulted to new 21-month highs Thursday morning on the news that 136 Bcf was pulled from storage facilities during the week ending Jan. 10. Buying was seen from all market segments and was intensified by the existence of buy-stops that were triggered on the way up. The February contract finished at $5.645, up 21.5 cents for the session and nearly 60 cents above its $5.06 low notched Tuesday. Volume in the gas pit was heavy as an estimated 124,108 contracts changed hands.

Buoyed by a massive buying binge by commercial traders who werelong paper positions and short January futures, natural gas futuressoared higher during the last 30 minutes of trading Wednesday,catapulting the market briefly above key resistance at $10.00. Whenall the dust had cleared and the orders tabulated in the data roomat Nymex, the numbers were staggering. During its 20-day tenure asprompt month at Nymex, January gained $3.773 or more than 60% tonotch the highest settlement in the history of the commodity at$9.98.

It sure didn’t take long for the August aftermarket to jump wellabove indexes, one market observer said. Boosted by screen strengthand the anticipation of closer to normal summer weather eventuallyinvading key northern market areas, all points except Malinregistered double-digit gains Wednesday.

After Wednesday’s 9.8-cent gain following what was construed asa bullish report on gas storage levels, futures rallied yesterdaywith July posting a 20.7-cent gain to a new contract high of$4.463, which was 1.7 cents off its daily high of $4.480.

There was a strong bull rally in gas futures yesterday. Afterbusting through and settling above the $3 barrier on Wednesday, Maysurged 6.6 cents higher to a new high of $3.087, a couple centsfrom its daily high of $3.105 and a greater distance from its$3.045 low for the day. The summer strip closed up 6.8 cents at anew high of $3.11, and the 12-month strip set a new high at $3.116.