Shift

Looking for an experienced global industry player and perhaps indicating a shift of potential gas supply sources, Houston-based Crystal Energy, LLC, announced last week that it has an “in-principle agreement” with Australian-based Woodside (USA) Energy Inc. to develop Crystal’s proposed liquefied natural gas (LNG) receiving terminal off the coast of Oxnard along the part of Southern California’s coast dotted with offshore oil platforms. Crystal originally proposed bringing Alaskan gas supplies through its terminal.

Unable to make up its mind over the past week on whether to rally higher or decline, July natural gas futures on Friday made a definite decision to test lower, hitting a $6.28 low just after noon (ET) before closing at $6.353, down 13.2 cents to close the week.

Despite the increased volatility for oil and natural gas prices, the shift of wealth from other parts of the U.S. economy into the energy sector will continue to drive stock prices higher — especially in the next year — according to Raymond James’ latest “Stat of the Week.”

Despite the increased volatility for oil and natural gas prices, the shift of wealth from other parts of the U.S. economy into the energy sector will continue to drive stock prices higher — especially in the next year — according to Raymond James’ latest “Stat of the Week.”

After moving to either side of unchanged, the natural gas futures market finished in slightly positive territory Wednesday as concerns over a large storage number edged out forecasts calling for wide temperature swings over the next couple of weeks. At $6.387, the February contract was up 5.8 cents for the session, but well below its intra-day high of $6.58. At 70,004, estimated volume was moderate.

Weighed down by falling cash market prices, the natural gas futures market slipped lower Wednesday as traders took profits following a two-day, 90-cent rally earlier in the week. Bearish expectations ahead of Thursday’s storage report were also seen as a factor, and the market was quick to react with a gap-lower opening Wednesday morning. The February contract finished at $6.878, down 20.4 cents for the session.

Unfazed by storage data showing stocks decreased by 1 Bcf during the week ending Nov. 21, the natural gas futures market shifted lower Wednesday, as a local trader-led rally was crushed by another round of bearish weather forecasts. The January contract stair-stepped lower in two distinct selling surges. When the dust had settled and the orders were counted at Nymex, the prompt month had slipped 12.5 cents to close at $4.925 on its first day in the limelight.

In several different segments of the energy industry, California is forecasting smaller natural gas loads for electricity generation in the years to come.

Adding to Tuesday’s rebound, the natural gas futures market worked its way quietly higher Wednesday as bargain buyers again narrowly outnumbered speculative sellers. Some short-covering was also seen with traders taking a balanced portfolio approach prior to the release of fresh inventory data. The November contract finished at $4.924, up 4.9 cents for the session and within striking distance of overhead resistance in the $4.98-$5.00 area.