Rebounding

The industrial sector’s natural gas demand is not expected to rebound to favorable 2000 levels until about 2017, even though gas prices are likely to begin easing up after 2006, according to a new report issued by Energy Ventures Analysis Inc. (EVA).

The industrial sector’s natural gas demand is not expected to rebound to favorable 2000 levels until about 2017, even though gas prices are likely to begin easing up after 2006, according to a new report issued by Energy Ventures Analysis Inc. (EVA).

This week’s market started out looking suspiciously like the one preceding it, with prices rebounding solidly Monday from weekend softening. But a couple of sources doubted that last week’s run of rising prices right on through to till the weekend arrived will be repeated, particularly with a holiday weekend approaching.

As predicted, there was enough cold weather load in combination with a rebounding screen to extend mild firmness at most points Thursday. However, Northeast citygates fell by amounts ranging up to either side of 20 cents based on forecasts of moderating weekend weather, and a few other points were flat to down a nickel or so.

Ending a four-session long liquidation sell-off, the natural gas futures market turned higher Wednesday amid a combination of expiration-session short-covering and end-user strip buying. At $5.15, the March contract was up 7.3 cents for the session, but down a crushing 58 cents from its $5.73 debut as prompt contract. At 97,551, estimated volume was fairly light for an expiration day in the gas pit.

All points joined Monday in rebounding from weekend softness, but except for sizable transportation constraint-linked gains of 30 cents or so at the Southern California border, San Juan Basin and the Rockies, other advances were more moderate at about 15 cents or less.

Rebounding from the 18-cent setback suffered by the market Friday, natural gas futures rebounded Monday as technical bullishness mixed with sympathy buying following the run-up in crude oil futures. In a mirror image to Friday’s session when prices shuffled lower throughout the day, Monday’s natural gas trading action saw its highest prices near the 2:30 p.m. EDT closing bell.

Rebounding from Thursday’s price free-fall, natural gas futures turned higher Friday as traders bought back their shorts on the idea that governmental weather forecasts calling for mild temperatures through the remainder of the winter may be inaccurate.

Rebounding from two selling legs early in the session, natural gas prices shot higher Tuesday afternoon as weak shorts were forced to cover their earlier sales. At the closing bell the April contract had settled at $3.018, down 0.3 cents on the day but well above its earlier low of $2.86.