Sight

With two of his most likely opposition party political rivals stirring up energy issues this week, California Gov. Arnold Schwarzenegger appears to have forgotten about the energy sector, but aides in his Sacramento press office disagree with that perception. They predict Schwarzenegger will divulge before summer his “energy plan.”

The end is in sight for the long winning streak chalked up by Canadian natural-gas exporters, as deliveries remain consistently off their formerly torrid pace in setting 14 consecutive annual sales records in the United States. Canadian gas deliveries to the U.S. fell by 5.3% to 2.745 Tcf in the first three-quarters of the current gas contract year that ends Oct. 31 from 2.9 Tcf in the same period of 2000-01, the National Energy Board reports.

The end is in sight for the long winning streak chalked up by Canadian natural-gas exporters, as deliveries remain consistently off their formerly torrid pace in setting 14 consecutive annual sales records in the United States. Canadian gas deliveries to the U.S. fell by 5.3% to 2.745 Tcf in the first three-quarters of the current gas contract year that ends Oct. 31 from 2.9 Tcf in the same period of 2000-01, the National Energy Board reports.

Prices continued to sink Friday, but by significantly smaller amounts than the day before. Declines mostly ranged between a nickel and 15 cents, but were larger in California largely due to milder weather in the state. A majority of the price drops were in the vicinity of a dime.

After spending the first two weeks of July in a mini uptrend, natural gas futures broke beneath major support last week, as traders continued to factor in the blistering pace of storage refills and normal- to below-normal temperatures. The August contract was hit with heavy selling Monday, and then again Wednesday through Thursday, pressuring prices to new 14-month lows and dashing bulls’ hopes that a bottom had been achieved. August moved mostly sideways on Friday to close at $2.955, up a modest 1.6-cent for the day but down a whopping 29.5 for the week.

Bulls and bears took turns yesterday in the gas pit at Nymex as light buying pressure throughout the morning morphed subtly into selling interest in the afternoon. As a result, prices did not stray very far from center with most months able to eke out minimal advances for the session. The July contract finished at $3.747, which was 1.3 cents higher on the day.

Bears continued to roam the gas price woods Tuesday in nearly all markets. Overly warm and power-short California was the major exception where prices for deliveries at the PG&E Citygate and at the Southern Border into PG&E were up sharply.

California energy officials held their breath Monday and bracedthemselves for what might be the severest test yet for the state’soverworked electricity infrastructure and overheated wholesalepower market.

Once again the bulls were on a rampage Tuesday, and sourcesexpected them to still be running today. Increases of about a dimeor more at all points dominated the cash market for the secondstraight day. Prices got support from a cold snap in thenortheastern U.S. and eastern Canada, hot weather from Californiathrough the Southwest into Texas and Louisiana and parts of theMidcontinent, and continued screen strength—both in natural gasand crude oil futures. Gas gained just over a dime, and crude rosejust over a dollar to finish above $22/bbl.