Rebounded

The United States in 2010 continued to lead the world in natural gas production, boosted by massive shale deposits, according to the latest statistical review by BP plc.

Prices rebounded at nearly all points Monday, even with weather forecasts being mostly mild to chilly in northern market areas and merely warm — but not especially hot except from Texas through parts of the desert Southwest — in the southern U.S. The previous Thursday’s futures gain of 10.2 cents and returning industrial demand after a holiday weekend were chiefly responsible for the overall firmness.

Canadian exports have rebounded from lows touched on depressed international natural gas markets during the last heating season, according to the latest trade scorecard of the National Energy Board (NEB).

Canadian exports have rebounded from lows touched on depressed international natural gas markets during the last heating season, according to the latest trade scorecard of the National Energy Board (NEB).

February natural gas futures on Tuesday dipped into the mid-$4.50s but rebounded to close the regular session at $4.669, up 1.9 cents from Monday’s finish. Traders, some of whom had been expecting a correction to Monday’s monster 24.5-cent gain, took Tuesday’s strength as a sign that the bulls are a little more firmly in control.

After breaking below $4 for the second time in the last four regular trading sessions, January natural gas futures on Wednesday rebounded to close at $4.152, up 9.3 cents from Tuesday’s finish.

As the general weekend respite from a widespread spell of cold weather proved to be fleeting, prices rebounded strongly Monday from their only overall softness of the previous week. Besides the prospects of heating load shooting higher again, the previous Friday’s 15.7-cent gain by December futures and the return of industrial demand from its typical weekend lull contributed to cash market increases.

After dipping below $3.700 for a second straight day, natural gas futures showed a bit of a backbone Tuesday afternoon as the November contract rebounded a bit to close at $3.743, up 1.6 cents from Monday’s finish.

Prices rebounded, if only slightly, at most points Monday as temperatures closer to normal for those of late August began to return in most of the market areas.