Natural gas futures retreated Monday as traders quickly reacted to reports of some moderation in private weather forecasts while others attributed the magnitude of the decline to computer-driven sell orders. At the close February natural gas fell 15.6 cents to $4.580 and March retreated 14.5 cents to $4.598. March crude oil lost $1.24 to $87.87/bbl.
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Futures Seen Another 10 Cents Higher After Bullish Storage Stats
February natural gas futures scored a second straight double-digit advance Thursday as traders reacted to a bullish inventory report and were forced to cover short positions.
SDG&E Unfazed by Draft Report on Sunrise Powerlink
Calling it a “positive milestone” in what is now a three-year permitting process, Sempra Energy’s San Diego Gas and Electric Co. (SDG&E) early in the new year reacted upbeat and confident that its proposed 150-mile, $1.3 billion high-voltage transmission project, Sunrise Powerlink, ultimately will be built. The utility insists it is the most “cost-effective and reliable” means of tapping large new renewable-produced electricity from neighboring Imperial County.
Moderating Temperatures Drive Cash Prices Lower
Prices reacted to heating load either already fading or being on the verge of fading in several market areas by dropping at nearly every point Wednesday. Declines ranged from a little less than 15 cents to around $1.25, with the biggest losses generally concentrated in the Midcontinent/Midwest, Texas Gulf Coast and Northeast.
Northeast Strongest Amid Overall Mixed Pricing
The cash market was a mishmash of higher, lower and flat quotes Monday as varying points reacted to a variety of weather outlooks and capacity constraints. There was little consistency of price movement within individual market areas other than the Northeast tending to see the greatest strength and Midwest citygates being solidly softer. The return of industrial load after a weekend hiatus provided a little support in all areas.
Northeast Plunges Lead Softening at All Points
End-of-January prices reacted to moderating weather trends (either already under way or impending), Thursday’s screen loss of a dime, and lower weekend industrial load by dropping across the board Friday. The Northeast again was far out in front in leading the charge downward with multi-dollar plunges that had citygates returning to something more closely resembling “normal” levels.
Prices Fall on Heat Moderation, Day-Earlier Futures Dip
The cash market reacted as expected to Monday’s futures weakness and further declines in fundamental weather support, registering drops between about a nickel and 20 cents at nearly all points Tuesday. Those in the range of 10-15 cents formed a slight majority.
Bullied by End-Of-Month Forecasts, Futures Rocket Toward Six-Week Highs
Natural gas futures exploded to the upside Tuesday morning as traders reacted to private weather forecasts suggesting the December thaw will be short-lived, and temperatures will return to below normal by the end of the month. After gapping higher at the opening bell, the market was quickly whisked above recent highs by buy stop-loss orders positioned in the mid to upper $4.40s. The January contract finished at $4.636, up 27.7 cents for the session and within easy striking distance of six-week contract highs at $4.66.
Natural Gas Issues Heating Up in Illinois
As the December bills for natural gas use hit the home front,city and state officials in Illinois, one of the hardest hit lastmonth, weatherwise, reacted with measures to increase low incomeassistance and investigate the cause of the high prices.
Ghost Storage Report Gives Bulls Halloween Week Treat
Natural gas futures finished the week on a strong note Friday astraders reacted to an unconfirmed (and later retracted) news reportthat the American Gas Association (AGA) had overestimated theamount of working gas in underground storage facilities. Aftergapping higher on the open, the December contract shuffled higherthroughout much of the session, closing 17.1 cents higher at$4.931.