July futures recovered from an opening loss but still couldn’t manage to make it into positive territory Wednesday. Bulls and bears seem almost evenly divided, but short-term traders did note a return of commercial buying interest. At the close July had eased 0.4 cent to $4.577 and August fell 0.2 cent to $4.611. July crude oil tumbled $4.56 to $94.81/bbl.
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U.S. Shale Reshaping Global Gas Market, Says BP
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.
Lower 48 Gas Output Bounces Back from February Lows
Natural gas production in the Lower 48 states recovered in March from the weather-induced decrease seen in the previous month (see NGI, May 9), increasing 3.8% (2.49 Bcf/d) to 68 Bcf/d from 65.51 Bcf/d in February, according to the Energy Information Administration’s (EIA) monthly natural gas report.
Lower 48 Production Bounces Back from February Lows
Production in the Lower 48 states recovered in March from the weather-induced decrease seen in the previous month (see Daily GPI, May 4), increasing 3.8% (2.49 Bcf/d) to 68 Bcf/d from 65.51 Bcf/d in February, according to the Energy Information Administration’s (EIA) monthly natural gas report.
Mixed Price Movement Mostly Close to Flat
Despite modestly weaker futures guidance (down 2.6 cents on the previous Friday), the cash market recovered to a large extent Monday from major softness late last week. Gains highly dominated numbers that seldom varied more than a few pennies up or down from unchanged.
Traders See Retest of $4.00, Yet May Advances
Thanks in part to some kind words for the commodity from the President of the United States, May natural gas futures recovered a hefty chunk of Tuesday’s losses Wednesday as traders sensed a surge past recent highs. However, the move fell short as May added 9.2 cents to $4.355 and June added 9.1 cents to $4.426. May crude oil retreated 52 cents to $104.27/bbl.
Statoil Agrees to More Midstream Services in Marcellus
A U.S. subsidiary of Norway’s Statoil ASA has finalized an agreement to increase the availability of natural gas midstream services in the Marcellus Shale of northern West Virginia.
Talisman Fined for Spill at Marcellus Well Pad
A U.S. subsidiary of Calgary-based Talisman Energy Inc. has been fined by Pennsylvania regulators for a large diesel fuel spill that occurred last year at a Marcellus Shale natural gas well pad.
Most Points Rally to Partially Atone for Friday Dives
Still-moderate weather fundamentals for the most part didn’t seem to offer any rationale, but prices recovered some lost ground at all points Monday following an extremely weak weekend market. Without any new developments from previously mostly mild to cool weather, it seemed that at least a bit of “storm hype” must have crossed traders’ minds.
Most Points Near Flat; Modest Gains Dominant
Most of the market was less than a dime up or down from flat Tuesday as prices recovered to some extent from the previous Friday’s major losses across the board, despite overall heating and cooling load continuing to be light in most areas. Patches of chill here and there, along with predicted Wednesday highs in the mid to high 80s in parts of the South and approaching 100 in the desert Southwest, did contribute a modicum of weather-based demand.