February natural gas futures managed to rebound 13.8 cents to close at $4.780 on Wednesday, but market experts were quick to put the brakes on any bullish optimism. Even with brutal cold lingering in a number of important gas-consuming regions, most traders were quick to note that the slumping economy remains the lead story in commodity trading.
Rebound
Articles from Rebound
Futures Sink on Smaller than Expected 67 Bcf Storage Pull
Wednesday’s rebound in natural gas futures values proved short-lived after the Energy Information Administration (EIA) reported Thursday morning that only 67 Bcf was removed from underground storage for the week ended Dec. 5. The January natural gas futures contract responded bearishly to the report in morning trade before closing at $5.598, down 8.8 cents from Wednesday’s close.
Energy Stocks Rebound After Sharp Decline, CEO Stock Sales Last Week
Energy companies’ share prices were on the rebound Monday, a welcome turn for the sector, after ending last week drastically down and on reports that the CEOs of Chesapeake Energy Corp. and XTO Energy Inc. had been forced to sell millions of shares of their companies’ stock.
Declining Futures Cement Monday’s Sub-$7 Move
Natural gas futures followed the Dow Jones Industrial Average lower for a second straight day Tuesday while crude recorded a rebound of sorts. November natural gas shaved another 6.7 cents to close at $6.768, further validating Monday’s penetration of long-holding support at $7.028.
Some Points Rally, But Prices Still Mostly Softer
Several points were able to rebound Monday from Friday’s across the board plunges based on rising heat levels in much of the East and the return of industrial load from its usual weekend timeout, but for the most part cash prices continued to move lower due to cooling load remaining fairly moderate in northern market areas and the screen’s 23.9-cent decline on Friday, which capped a full trading week of losses for the August natural gas contract.
As Expected, Screen Gain Able to Rally Cash Quotes
Most of the cash market was able to rally Friday, spurred primarily by the previous day’s 29.4-cent rebound by August futures and to some extent by forecasts of slightly higher heat levels during the weekend in the South, Northeast and Pacific Northwest. The overall move higher defied cooling trends in the Midwest, Rockies and inland California and the loss of industrial load that occurs during a weekend.
Softness Continues at Most Points, But Screen Gain May Rally Cash
Most of the cash market dropped again Thursday, pressured lower by Wednesday’s third straight day of futures weakness and unable to rebound despite increases of cooling load in some areas.
Most Points Rebound; Northeast Continues to Fall
A large majority of the cash market was able to rebound Monday as a mass of arctic air, which The Weather Channel (TWC) characterized as bitterly cold, was due to move into the Plains and western Midwest behind a cold front Tuesday. A less severe cold front was in Tuesday’s forecast for the South.
Smallish 57 Bcf Storage Build, Storm Concerns Buoy Futures
November natural gas futures put in a small rebound Thursday morning following an Energy Information Administration (EIA) storage report that revealed that 57 Bcf was injected into underground stores for the week ended Sept. 28. The injection came in on the low side of most industry expectations and was well below historical comparisons. As a result, the prompt-month pushed higher to close at $7.412, up 13.5 cents from Wednesday.
Short-Covering Rally Quashed as Futures Drop Nearly a Dime
Tuesday’s rebound in natural gas futures prices continued Wednesday morning until running into resistance and reversing lower. The August contract reached a high of $6.840 before settling on the day’s low of $6.600, down 9.9 cents from Tuesday’s close.