Rebounding

Asia and the United States helped boost global consumption of natural gas by 7.4% in 2010 to a record 111.9 Tcf, effectively rebounding from a 2009 slump, according to the Worldwatch Institute, an environmental research firm based in Washington, DC.

Asia and the United States helped boost global consumption of natural gas by 7.4% in 2010 to a record 111.9 Tcf, effectively rebounding from a 2009 slump, according to the Worldwatch Institute, a global environmental research firm based in Washington, DC.

The market proved Friday it had at least one more trick left up its sleeve, rebounding at a large majority of points despite The Weather Channel’s (TWC) calling for warmer-than-average weekend temperatures in nearly all regions except Western Canada and the upper reaches of the West. Cash prices did have a bit of support from prior-day futures, but it seemed that weekend declines of industrial load would have largely offset that.

Prospects of greater heat levels returning this week had prices rebounding at a large majority of trading locations Monday. The previous Friday’s rise of 3.6 cents by prompt-month futures and the return of industrial load from its usual weekend decline were additional minor bullish factors.

Rebounding from last Friday’s dip below $4, January natural gas futures surged higher Monday as market bulls were supported with forecasts that were looking chillier than they did just three days earlier. The prompt-month contract treaded between $4.013 and $4.248 before settling near the peak at $4.237, up 17.1 cents from Friday’s finish.

After probing lower values in early morning Monday trade, the October contract broke the recent cycle by rebounding higher during regular session hours as storm activity in the Atlantic continued to increase. The prompt-month contract ended up testing resistance at $4 with a $3.975 high before closing out the day at $3.938, up 5.5 cents from Friday’s finish.

Coming off a new low for the move of $4.182 on Monday, September natural gas futures recorded a low of $4.186 on Tuesday before rebounding to close at $4.267, up 3.9 cents from the previous day’s finish.

September natural gas futures values plumbed lower prices on Wednesday before coming rebounding to close the regular session at $4.326, up 2.9 cents from Tuesday’s finish. The price action occurred as Tropical Depression 5 became disorganized and dissipated in the northern Gulf of Mexico as it headed northwest toward the southeastern Louisiana coast.

The nation’s economy may be slowly rebounding from the recession that began more than two years ago, but the outlook for increased natural gas demand remains unclear, according to Adam Sieminski, chief energy economist for Deutsche Bank.