Finishing higher for only the second day out of eight, December natural gas futures on Monday climbed 45.8 cents to settle at $11.873. Despite the sizeable jump, one broker said the downtrend is still healthy, adding that Monday’s price action was just a short-covering rally.
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After absorbing the sizeable 230 Bcf natural gas storage report pull on Thursday without spiking, March natural gas futures used Friday to explore lower in search of support. Keeping within a tight 15-cent range, the newly minted prompt month hit a low of $6.15 in morning trading before settling at $6.259, down 9.3 cents on the day and less than a cent lower than the previous Friday’s settle.
The energy industry breathed a sigh of relief Thursday morning as the Energy Information Administration reported that 123 Bcf was pulled from underground natural gas storage for the week ended Dec. 17. While higher than most expectations, the draw remained within the industry’s projection range — unlike the erroneous pre-Thanksgiving report that threw the market into chaos.
Apparently unimpressed with the larger than expected storage withdrawal announced Thursday, the April natural gas futures contract dropped 9.3 cents on the day to close at $5.336. The consensus among market observers was that the 65 Bcf pull from storage surprised no one after the East experienced a widespread cold snap last week.
Despite high hopes for a sizeable turnout in light of currently elevated natural gas prices and royalty relief, the U.S. Department of the Interior’s Minerals Management Service (MMS) reported last Wednesday that there was only modest interest at its Eastern Gulf of Mexico (GOM) Lease Sale 189.
Despite high hopes for a sizeable turnout in light of currently elevated natural gas prices and royalty relief, the U.S. Department of the Interior’s Minerals Management Service (MMS) reported Wednesday that there was only modest interest at its Eastern Gulf of Mexico (GOM) Lease Sale 189.
Riding the wave of strong growth in operating income from the company’s diversified energy businesses, a return to more normal weather in its gas distribution business and lower interest expense, Chicago-based Peoples Energy on Friday announced sharply higher fiscal year 2003 results compared to fiscal 2002.
Rising air conditioning load across the South was insufficient to avert modest to sizeable price declines at nearly all points Wednesday. Flat Southern California border and Transwestern Permian numbers were the exception to declines ranging from about a nickel to about 30 cents in the rest of the market.