November natural gas futures retreated following pronounced weakness in petroleum and equity markets Friday. Traders pointed to technical weakness with little in the way of support until prices fall another $1.
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Futures Fall, But Market Fears Wild Crude-Like Expiration
Despite venturing above psychological resistance at $8 for the second time in as many days, October natural gas futures once again retreated as traders have recently shown a fair amount of comfort with prices between $7 and $8. The front-month contract, which expires Friday, traded between $7.605 and $8.093 during Wednesday’s regular session before closing out at $7.679, down 25.2 cents from Tuesday’s finish.
Prices Decline on Weather Fundamentals; July Drops 16.9 Cents
July natural gas futures retreated Tuesday as weather bulls were forced to concede to moderating temperatures in eastern consuming markets and crude oil tumbled. At the close of floor trading July natural gas fell 16.9 cents to $12.435 and August shed 16.8 cents to $12.516. July crude oil skidded $3.04 to $131.31.
Heat Forecast to Ease, Tropics Calm; July Drops 8.9 Cents
July natural gas futures retreated Monday as much of the impetus for higher prices in play last week — forecast hot weather and soaring oil prices — dissipated. July dropped 8.9 cents to $12.604 and August dropped 7.9 cents to $12.684. July crude oil fell $4.19 to $134.35.
Futures Ease on Intraday Crude Weakness; November Off 7.8 Cents
November natural gas futures retreated after November crude oil futures came off of an all-time high Tuesday as traders sensed the day’s high price in the prompt-month natural gas contract may represent a near-term peak. November natural gas fell 7.8 cents to settle at $7.367.
July Gas Futures Slip 6.1 Cents in Quiet Session; Crude Dumps Another Buck Eighty
July gas futures Tuesday retreated back down to the levels reached prior to the arrival of Tropical Storm Alberto, slipping 6.1 cents to $6.163 in a quiet day of trading. The near-month contract opened the regular trading session higher at $6.27 and reached a daily high of $6.310 in the morning before sliding back down and ending the day near its daily low of $6.140.
CERA: Gas Prices to Ease Below $5/MMBtu in the Long Term
North American natural gas prices will gradually ease over the coming years and eventually return to sub-$5/MMBtu levels toward the end of the decade because of growth in liquefied natural gas (LNG) imports and U.S. and Canadian unconventional gas resources, Cambridge Energy Research Associates (CERA) predicted Wednesday.
July Natural Gas Drops 22.2 Cents Ahead of Expiration Tuesday
Continuing its divergent path from the petroleum futures complex, July natural gas on Monday retreated as August crude explored north of $60/bbl. Looking at expiration at the end of business Tuesday, the natural gas prompt month traded as low as $7.12 on Monday before settling at $7.138, down 22.2 cents from Friday’s settle.
Screen, Long Weekend Likely to Extend Softening
This week’s two-day price rally ran out of gas (pun intended) Wednesday as prices retreated across the board by amounts ranging from a little less than a dime to about a quarter. The previous day’s natural gas futures drop of 7 cents, coupled with a plunge of nearly a dollar and a half in the May crude oil contract that day, were cited as the chief factor in the softness since fundamental weather-related demand is seeing little change.
Raymond James: Fuel Switching Evident with Falling Gas Prices
When natural gas prices retreated from a peak in May 2003 there were signs that “switching-capable” industrial customers were returning to natural gas, according to Raymond James’ latest “Stat of the Week.” And, along with falling gas prices, the rise in price of emissions credits likely will give industrial consumers even more incentive to switch to gas.