Search

Near-month natural gas futures went in search of lower price levels Thursday morning following news from the Energy Information Administration (EIA) that 138 Bcf was withdrawn from natural gas storage for the week ending Jan. 7. The storage report, which was “bearish” compared to most industry expectations, combined with freshly updated weather forecasts for slightly less chilly temps later this month, pushed February futures on Thursday to a low of $4.382 and a close at $4.407, down 12.4 cents from Wednesday’s finish.

Prices rebounded at all points Monday based largely on the previous Friday’s 32-cent climb by futures and the return of industrial load from its normal weekend drop. Weather-based demand continued to be relatively light.

July natural gas futures put in another tight trading range on Wednesday as uncertain traders continue to search for bullish or bearish news that they don’t already know. Despite crude futures recording a new seven-month high on Wednesday, the front-month natural gas contract traded in a slim 13.6-cent range between $3.665 and $3.801 before closing out the regular session at $3.708, down a mere 2.3 cents.

The frenzied search to find and develop new oil and natural gas supplies in ever more demanding areas, driven into high gear by escalating prices, will lead to a boom in capital and operational spending in the world’s offshore regions, according to Douglas-Westwood Ltd. and Energyfiles.

The frenzied search to find and develop new oil and natural gas supplies in ever more demanding areas, driven into high gear by escalating prices, will lead to a boom in capital and operational spending in the world’s offshore regions, according to Douglas-Westwood Ltd. and Energyfiles.

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.

Coming off of Monday’s venture lower, June natural gas futures on Tuesday experienced a little bit of a short-covering rally as traders continued to search for relevant fundamental news. The prompt month stayed within a range from $6.130 to $6.320 before settling at $6.252, up 12.9 cents on the day.

Adding to its 52.4-cent drop on Monday, April natural gas on Tuesday continued to probe lower in search of support. The contract set a high for the day of $6.800 in the morning and recorded a $6.580 low in the afternoon before settling at $6.714, down 7.5 cents on the day.

Rigs drilling in a search for natural gas and oil in the United States for the month of April came in at 1,334, an increase of 28 over March, according to the latest statistics from Baker Hughes Inc. April 2005 also had 183 more rigs operating in the U.S. than April 2004.