Rain

December natural gas is expected to open 10 cents higher Friday morning as a shift to cooler temperatures was noted for both East and West Coast population centers. Overnight oil markets skidded.

Blame it on the rain, or a lack thereof. Just days after the Susquehanna River Basin Commission (SRBC) had restored all of the 17 water withdrawal permits it had temporarily suspended in mid-April, back-and-forth drought conditions in northeast Pennsylvania have forced the agency to re-suspend two permits.

A moderate majority of points were up again Tuesday as a mix of rain and snow is expected to move into the Northeast and parts of the Mid-Atlantic before fading Thursday, and except for the eastern end of the South most regions can expect bottom-end temperatures ranging from the vicinity of freezing to much lower. Monday’s 12.3-cent screen dive had only a moderate impact on the softening locations.

Extensive rain and flooding have hampered MDU Resources Group Inc.’s operations and delayed growth activity in key producing states in the Rocky Mountain region, including the Bakken Shale, to such an extent that the company is lowering its 2011 natural gas and oil production forecasts.

Prices continued to rise at most points Thursday as frigid temperatures and various types of frozen precipitation (sleet, freezing rain and snow) occupied more and more of the U.S. and Canada. A 32.3-cent spike by January futures on Wednesday gave extra support to Thursday’s cash market.

Forecasts of widespread areas of cooling rain in the Midwest and Northeast — and to a lesser degree in the South — along with a cold front due to move into much of the Midwest caused prices to retreat at most points Wednesday. Tuesday’s modest 6.9-cent slide in August futures also played a minor role in the overall softness.

Farmers often pray for rain. These days at least some who farm the oil and gas patch are praying for M&A — mergers and acquisitions, that is — the thunderclouds from which oil and gas properties fall.

Farmers often pray for rain. These days at least some who farm the oil and gas patch are praying for M&A — mergers and acquisitions, that is — the thunderclouds from which oil and gas properties fall.

Because of market area rain that eased a low-linepack condition, Florida Gas Transmission lifted Wednesday an Overage Alert Day notice that had declared Monday. An El Paso low-linepack OFO remained in effect.