Sensed

September natural gas futures continued to march lower Friday as traders sensed a pall over the market prompted by Thursday’s bearish inventory report, weak economic data and continued discord in Washington over the debt ceiling. At the close September had fallen 9.9 cents to $4.145 and October was down 10.0 cents to $4.157. September crude oil fell $1.74 to $95.70/bbl. For the week September natural gas futures lost 22.5 cents.

April natural gas futures continued their descent Wednesday as traders had to digest more moderate weather forecasts and sensed that although the market continues to hold technical support, it is just a matter of time before prices fall again. At the close April natural gas had fallen 5.5 cents to $3.818 and May dropped 5.6 cents to $3.894. April crude oil continued its sub-orbital flight path, adding $2.60 to $102.23/bbl.

June natural gas futures eased slightly in an apparently lackluster trading session, but those watching the more deferred contracts swoon sensed a significant change in the market that may lead to lower prices.

September natural gas futures managed to stage a modest advance as traders cited technical studies showing the likelihood of a near-term advance, and traders sensed a market well bid at lower levels. September natural gas rose 4.7 cents to $8.773 and October futures added 3.5 cents to $8.855. September crude oil slipped 59 cents to $118.58/bbl.

May natural gas futures eased in busy trading Tuesday as traders sensed an overextended market and an end to upward price momentum. Traders were looking for a close above $10.650 as an indicator that the upward trend in prices was still intact. May futures, however, fell 12.6 cents to $10.607, and June lost 11.1 cents to $10.763.

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.

Cash prices continued climbing by another nickel or more at mostpoints Wednesday, but traders sensed the market might have peakedfor the first week of the May aftermarket. They cited late dealsbeing done several cents below the early-morning highs. And the AGAstorage report of 34 Bcf in injections last week, although it cametoo late to affect Wednesday’s cash business, was regarded by manyas contributing to a more bearish mood. One source characterizedthe figure as “kind of middle of the road” (because it met theexpectations of many) but leaning slightly to the bearish side. Heand others noted the drop in Access futures prices after the reportcame out.