Session

Senate Energy Committee Chairman Frank Murkowski (R-AK) saidyesterday there will be a third mark-up session on electriccompetition legislation on June 7. About 30 amendments have beensubmitted for mark-up so far. “We will have staff work to pare downthe number of amendments, and I will meet personally with Sen.[Jeff] Bingaman and staff to come to grips with the concerns.”Bingaman (D-NM) is ranking minority member of the committee.Murkowski cited the extent of federal jurisdiction vs. statejurisdiction as the main difference among committee members.”Secondary issues are things like benefit funds, renewable mandatesand nuclear decommissioning…..” He urged committee members tocome to terms with the idea of a comprehensive electric bill,adding “I’m not going to be the one who kills a comprehensivebill.”

Boosted by a more than a nickel increase in during the overnightAccess trading session, followed by a second straight day of higherearly morning over-the-counter dealings, natural gas futures werequick out of the chute Tuesday as traders set their sights onceagain on the key $4.00 level. But just like Monday, yesterday’searly buying quickly turned into profit-taking when it becameapparent $4.00 was beyond bulls’ reach. The June contract finished6.7 cents stronger at $3.814, after trading within a tight,8.5-cent range.

After gapping up an impressive 2.5 cents at the open yesterday,natural gas futures chopped higher throughout the session astraders grappled with the potential of prices climbing even higherthis summer. The May contract reached its $3.15 high for the dayshortly after 2:30 P.M. (EST), only to tumble lower to settle at$3.137 amid a flurry of market-on-close selling. Estimated volumewas light with only 57,253 contracts changing hands.

After drifting sideways for much of the session yesterday,natural gas futures were hit with a late round of selling upon therelease of fresh industry supply data. The May and June contractswere hit the hardest, each tumbling 4.3 cents to finish at $3.055and $3.075 respectively. Estimated volume was average with 78,378contracts changing hands.

For the second trading session in a row Monday the Aprilcontract opened at 2.81, but in contrast to the price fallexperienced last Friday, prices spiked higher at the open yesterdayand quickly tested life-of-contract highs. However, severalattempts to punch through the $2.88 level failed and that left themarket with an 8.6 cent advance and a $2.86 closing price.

Even an abbreviated pre-holiday trading session at the New YorkMercantile Exchange gave traders no rest last Friday as the marketclawed its way higher from a “disappointing” open only to reverseright back down at the close. When all the dust had settled and theorders were tabulated, the March contract was off 3.4 cents for theday at $2.633.

An actively traded over-the-counter market set the stage for aturbulent session Friday in the natural gas pit at Nymex andtraders did not disappoint — taking prices higher on the openbefore sending them lower in two distinct selling waves.

After trading within an extremely tight, 3-cent range for almostthe entire trading session Thursday, the January contract was hitwith a late sell-off, as bears took advantage of nearly-illiquid,pre-holiday trading conditions. No fresh news was seen to incitethe liquidation, leaving several traders to suggest it was anattempt to set a bearish tone for the January contract expirationTuesday. The prompt month finished down 4.5 cents at $2.399 amidlight estimated volume of 28,617.

For the second trading session in a row, natural gas futureswere hit with a wave of selling pressure Monday, as bears basked inthe glow of forecasts calling for continued above-normaltemperatures across much of the country. After showing earlypromise last week in trading up to $2.485, the January contract hassince slipped to new life-of-contract lows, closing at $2.224yesterday. Activity was with 69,325 contracts changing hands.