With focus shifted away from last week’s diminutive storage withdrawal (80 Bcf) and onto forecasts for the coldest air thus far this winter, the natural gas futures market erupted higher Monday as sellers backed away from a steady stream of commercial short-covering and speculative buying. The February contract received the biggest boost in the market’s first trading session of the year, rallying 63.8 to close at $6.827. At 48,897 contracts, volume was extremely light for the session.
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Futures Bulls Dig In as Battle Over the $5.00 Level Heats Up
After etching a 33-cent gain and propelling the market through key resistance Thursday, natural gas bulls cooled their heels Friday in a session that was more about position squaring ahead of the weekend than it was about market direction. At the closing bell the September contract was down 4.5 cents at $5.037. However, by closing above $5.00, the market ratified Thursday’s bull move, potentially setting the stage for more advances this week.
CA Independent Shows 3rd Quarter Profit, But Prospects Stymied
Although still fighting investor resistance on some of its pet projects, Bakersfield, CA-based Tri-Valley Corp., one of California’s more aggressive independent oil/gas developers, Wednesday reported a profit for the third quarter, along with estimates for a profit for all of 2002.
Land Disputes Hold Up Some Projects in Far North
Despite a regional pocket of persistent resistance, Canadian producers keep on expanding their northern frontier of natural gas development by connecting newly-discovered reserves to the pipeline grid. While a small Indian band continued to hold up the action last week in a 50,000-square-mile area of northeastern British Columbia, the industry moved to add an entirely new supply area in the southern Northwest Territories.
Futures Held to Tight Range Ahead of AGA Data
With little in the way of fresh fundamental or technical impetus, natural gas futures drifted sideways and lower Tuesday as traders elected to wait for a clearer supply-demand picture to develop. The September contract remained within an extremely tight 5.5-cent range, well beneath Monday’s gap lower open, but safely above support in the $3.03-10 area. At the closing bell, September was 1.7 cents weaker at $3.17.
Futures Chop Sideways as Traders Wait for Next Bear Pill
After opening higher but failing to test resistance at $4.38, natural gas futures checked sideways yesterday as traders caught their breath after Monday’s 25-cent price-erosion. During the open-outcry session Tuesday, the prompt June contract closed at $4.279, just about equally between Monday’s $4.239 close and its $4.32 high.
Opposition to Gas Exports Growing in Canada
After a lengthy absence, resistance is redeveloping in Canada tolong-term commitments of significant Canadian gas supplies tomarkets in the United States.
Opposition to Gas Exports Growing In Canada
After a lengthy absence, resistance is redeveloping in Canadaagainst any lasting new commitments of significant natural-gassupplies to markets in the United States.
Pre-Weekend Profit-Taking Takes Bite Out of Midweek Gains
After testing, but not breaching stubborn resistance at $4.60Thursday, natural gas futures tumbled lower Friday as traderselected to take profits ahead of the weekend. The near-month Julycontract was hit with two distinct selling waves during the firsthour of trading Friday, setting the tone for a session in which thecontract slipped 10.3 cents to finish at $4.448.
Shaky Friday Finish Belies Market’s Strength
In what may turn out to be a Pyrrhic victory, bulls weresuccessful on two fronts Friday — testing resistance at $3.00 andposting a gain for the third straight session. However, thoseachievements may have come at a price because even dyed in the woolbulls were shaking their heads after watching heavy selling enterthe market once prices reached over the $3.00 mark.