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Traders had realized that a belated stretch of severe winter weather throughout much of North America was the only thing keeping spot prices firm since the end of January, so it was purely a matter of “when” a market retrenchment would begin. The “when” turned out to be Wednesday, as across the board declines were topped by plunges ranging up to slightly more than 70 cents (Algonquin citygate) in the previously high-flying Northeast.

Prices continued to drift lower again Thursday, but the declines were getting smaller and traders reported detecting hints of a strong possibility for a rebound today. Most of yesterday’s drops were around a dime or less, and scattered points such as intra-Alberta, Sumas, Texas Eastern-East Texas, the Florida and Algonquin citygates, Kern River and the California border-PG&E were flat to a tad higher.

Following a two-day, 25-cent price slide, natural gas futures rebounded modestly Friday as traders covered shorts ahead of the weekend and in anticipation of cooler temperatures this week. Also supportive on Friday was an up-tick in crude oil prices, which advanced 58 cents to finish at $18.03. The December natural gas contract experienced a similar bounce, gaining 8.6 cents to close at $2.637.

Punctuating Monday’s 32.6-cent price slide, natural gas futures probed lower Tuesday, as traders initiated the session by demoting the market to its second straight gap-lower open. Prices shuffled lower throughout the morning, augmented by a boost of selling pressure, as the December contract broke beneath the $2.835 low from Oct. 24. However support held and the prompt month retraced a portion of those losses in the afternoon to close with a 4.2-cent loss at $2.88.

Oklahoma City-based Devon Energy Corp., which stands to become the largest independent when it completes its acquisitions of two North American producers, saw its third-quarter earnings decline from last year, posting $90 million, or 69 cents per share, compared with earnings of $165 million or $1.27 per share a year ago. Mitchell Energy & Development Corp., one of Devon’s acquisitions, also reported lower quarterly earnings and now plans to reduce its active Texas drilling program.

Oklahoma City-based Devon Energy Corp., which stands to become the largest independent when it completes its acquisitions of two North American producers, saw its third-quarter earnings decline from last year, posting $90 million, or 69 cents per share, compared with earnings of $165 million or $1.27 per share a year ago. Mitchell Energy & Development Corp., one Devon’s acquisitions, also reported lower quarterly earnings and now plans to reduce its active Texas drilling program.

Prices fell at all points Thursday, with the largest declines of about a quarter or more concentrated in the Rocky Mountains. It was hardly a surprise to encounter a weakening market, one trader said. A static screen had no influence on cash, he added, but the key factors were familiar to everyone: mild weather everywhere and essentially full storage approaching the winter.

Last week’s market closed on a “relatively” sedate note Friday, at least relative to the preceding trading fireworks. But the downward price movement was still being measured in double digits in nearly all cases.

Joining the growing list of concerned analysts, UBS Warburg’s Ronald Barone said last week he expects to lower his natural gas price forecasts again this week and cut earnings projections for multiple energy companies in light of lower prices and the downturn in the economy.