Regular

In its first regular session as the front-month contract, May natural gas futures picked up where April left off — namely in search of higher price levels. The prompt-month contract reached a high of $9.830 before finishing the day at $9.800, up 11.3 cents from Thursday’s close and 66 cents higher than the previous week’s finish.

Putting together the second consecutive regular session of gains, natural gas futures traders on Tuesday once again discarded a mound of bearish fundamentals in exchange for changing weather forecasts, which are now calling for February to be not as warm as first expected. March natural gas futures recorded a high of $8.005 before closing out the day at $7.942, up 7.3 cents from Monday’s finish.

In its first regular session action as prompt-month contract, March natural gas futures — propelled by cold in the Midwest, inflation concerns and rumors of a record storage withdrawal — ran up to a high of $8.130 before finishing Wednesday at $8.045, up 10.2 cents from Tuesday’s close.

After keeping its head above key psychological $8 support for most of Friday’s regular trading session, the February natural gas futures contract stumbled within the last half hour of trade to record a low of $7.990 before settling at $7.993, down 8.8 cents on the day and 21.7 cents lower than the previous week’s close.

Despite a bearish 87 Bcf storage withdrawal reported on Friday, February natural gas futures surged higher during the second half of the regular session to close at $7.841, up 16.7 cents from Thursday’s close and 45.5 cents higher than the previous week’s finish.

January natural gas futures settled lower for a sixth consecutive regular session on Tuesday as isolated near-term cold would appear to be no match for warmer-than-normal winter temperature forecasts, more than comfortable natural gas storage levels and significant weakness in neighboring crude futures. January natural gas reached a low of $7.080 before closing Tuesday at $7.155, down 5.9 cents from Monday.

What a difference a week can make. After putting in an $8.210 regular-session high on Monday, July natural gas futures came full circle by Friday in reaching a low of $7.650 before settling at $7.663, down 16.2 cents on the day and 21.5 cents lower for the week.

On the final day of their regular legislative session, Alaska lawmakers late Wednesday adopted Gov. Sarah Palin’s Alaska Gasline Inducement Act (AGIA), which outlines plans for the state to seek proposals for a $30 billion-plus pipeline to bring Alaska natural gas to market. Projects that would meet state goals would be in line for tax and royalty incentives as well as a $500 million grant.

On the final day of their regular legislative session, Alaska lawmakers late last Wednesday adopted Gov. Sarah Palin’s Alaska Gasline Inducement Act (AGIA), which outlines plans for the state to seek proposals for a $30 billion-plus pipeline to bring Alaska natural gas to market. Projects that would meet state goals would be in line for tax and royalty incentives as well as a $500 million grant.