Remained

Because the Wabash River has remained above flood stage since early April, Rockies Express (REX) now projects it will commence REX-East service to the four delivery points in Illinois that are upstream of the Wabash in mid-May.

California’s natural gas producers stepped up drilling in recent years in response to high commodity prices; however, output has generally remained flat. And holding production at even flat levels will be a challenge, according to a California Energy Commission (CEC) natural gas analyst, given today’s lower commodity prices.

With the runoff win of Sen. Saxby Chambliss (R-GA) Tuesday, the Democrats’ hopes of obtaining a filibuster-proof majority of 60 members in the Senate died. But they remained undeterred, saying they have the support to fend off GOP efforts to derail major legislation.

Prices recorded strong gains across the board Monday as heating load remained plentiful despite warming trends in some areas such as the Midwest and sections of the South. Quotes also got modest support from industrial demand returning from its typical weekend decline.

Prices continued to rise Wednesday at nearly all points as heating load, though getting a bit lighter, remained fairly robust and was joined by prior-day futures support after the November contract rose 6.5 cents Tuesday.

Even with the hurricane-related disruptions from Gustav and Ike in September, prompt Henry Hub prices have remained below $8/MMBtu since the end of August, and as Gulf of Mexico production slowly recovers, supply strength elsewhere, economic weakness and a warm winter may pull winter gas prices below $7 by early next year, energy analysts predicted last week.

November natural gas futures tracked lower once again Wednesday along with major markets as investor confidence remained shaky despite a wave of global interest rate cuts. The Dow Jones Industrial Average fell another 189 points on the day, while November crude futures dropped $1.11 to close at $88.95/bbl and November natural gas futures shaved 2.6 cents to close at $6.742.

Even with the hurricane-related disruptions from Gustav and Ike in September, prompt Henry Hub prices have remained below $8/MMBtu since the end of August, and as Gulf of Mexico production slowly recovers, supply strength elsewhere, economic weakness and a warm winter may pull winter gas prices below $7 by early next year, a team of energy analysts predicted Tuesday.

Prices continued to rise at nearly all points Friday as weekend heating load was rising from the Northeast through the Rockies, cooling load remained substantial from the western half of the South through inland California, and anecdotal evidence indicated that the pace of storage injection purchases remains strong. The weekend drop of industrial demand apparently had little market impact.