Session

September futures going higher in after-hours activity after posting a regular session gain of 17.5 cents Thursday did not have the cash market-boosting impact that one source had expected. Instead, prices fell at virtually all points Friday due to cooling load being subpar for late August in several areas, traders discounting the possibility of Tropical Storm Fay causing any substantive shut-ins, and the decline of industrial load that accompanies a weekend.

August natural gas futures continued lower Friday and ventured briefly below $9 for a second consecutive session before closing at $9.084, down 23.9 cents from Thursday and $1.486 lower than the previous week’s finish. Despite the month-long plunge, some traders are noticing some significant buying efforts as people attempt to bargain hunt.

In its first regular front-month session, the June natural gas futures contract on Tuesday took a break from the recent spike to test out lower price values. The contract dipped back below $11 to record a $10.830 low before settling at $10.842, down 48.7 cents from Monday’s close and 43.8 cents lower than May’s expiration.

Despite trading within a slim 10-cent range, May natural gas futures on Friday knocked on the $11 door for a second consecutive session, only to be rebuffed once again. The prompt-month contract traded between $10.875 and $10.970 before closing out the day at $10.963, up 17.3 cents from Thursday and 37.6 cents higher than the previous week’s finish.

Mexico’s national oil company Petroleos Mexicanos (Pemex) has reported that a recent natural gas discovery at its deepwater Lakach field in the Gulf of Mexico (GOM) may hold 308 Bcf in gas reserves, with estimated total possible, probable and proven reserves of up to 1.3 Tcf.

After a mostly quiet session of straddling the psychological $10 price level, May natural gas futures on Monday lurched higher to close at $10.053, up 15.2 cents from Friday’s close. The renewed push has some market experts seeing even higher prices this time around.

May natural gas futures on Friday stunned some market watchers as it recorded a lower high, a lower low and a lower close than Thursday’s session despite a laundry list of bullish factors swirling around the market. The prompt month traded between $9.830 and $10.045 before closing at $9.901, down 19.7 cents from Thursday but still 57.9 cents higher than the previous week’s finish.

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.

After riding the roller-coaster of a session Monday up to a $9.595 high only to return to the station with a 2-cent loss at $9.346, natural gas futures traders were content to mostly sit on the sidelines Tuesday, perhaps in an effort to recover from motion sickness. The April contract traded in a quiet 18-cent range between $9.270 and $9.450 before closing out the day at $9.353, up less than a penny.