Somewhat

While significantly below year-ago levels, U.S. drilling activity rebounded somewhat in the third quarter, with total well completions up 10.2% from the second quarter, the American Petroleum Institute (API) reported last week. Natural gas activity saw the steepest quarterly decline in 10 years during the third quarter.

While significantly below year-ago levels, U.S. drilling activity rebounded somewhat in the third quarter, with total well completions up 10.2% from the second quarter, the American Petroleum Institute (API) reported.

Unity in price direction returned to the cash market Monday as all points rose in response to somewhat colder-than-expected weather forecasts and the previous Wednesday’s 17.3-cent advance by January futures. Last Wednesday’s report of a 147 Bcf storage withdrawal for the week ending Dec. 19, which exceeded consensus expectations, and the restoration of industrial load following a long holiday weekend added to cash bullishness Monday.

U.S. natural gas production points toward “supply outrunning demand growth” in 2009 and 2010, driving prices somewhat lower compared with the current forward curve, Barclays Capital energy analysts said in a research report.

U.S. natural gas production points toward “supply outrunning demand growth” in 2009 and 2010, driving prices somewhat lower compared with the current forward curve, Barclays Capital energy analysts said in a research report.

After recording a somewhat bearish trading day Tuesday, natural gas futures were back running with the bulls on Wednesday as the June contract recorded a new high for the move at $11.387 before settling at $11.327, up 17.7 cents from Tuesday’s close.

California Gov. Arnold Schwarzenegger returned somewhat to the Republican fold Wednesday, praising President Bush for acknowledging that the nation and world have a climate change problem. But he reminded the president he has now also said the nation has a responsibility to do something to help fix the problem.

Warmer ocean waters could mean fewer Atlantic hurricanes striking the United States, according to new findings by climate scientists at the National Oceanic and Atmospheric Administration (NOAA).

Somewhat improbably, since the high heat levels of last week have receded from most areas outside the desert Southwest, prices rose at most points Monday. The cash market did have support from the previous Friday’s 16.5-cent advance by August futures and from the return of industrial load from weekend hiatus.