Sorely

Traders looking for the expiring May natural gas futures contract to test psychological support at $3 were sorely disappointed Tuesday as it instead finished its run by gaining 6.8 cents over Monday’s close to terminate at $3.321. The June contract, which takes over Wednesday as the prompt month, added 7.8 cents to close at $3.440.

Natural gas futures bulls finally received some sorely needed support Thursday morning after the Energy Information Administration (EIA) reported that a slightly larger than expected 30 Bcf withdrawal from natural gas storage was recorded for the week ended March 13. April natural gas futures shot nearly 75 cents higher immediately following the report’s release before closing out the regular session at $4.174, up 49 cents from Wednesday’s close.

Traders expecting fireworks on the expiration of February natural gas futures were sorely disappointed Wednesday as the contract failed at an early push to higher prices and ended up going off the board at $4.476, down 2.7 cents. Before taking over as the new front-month contract, March natural gas on Wednesday dropped 2.5 cents to close at $4.420.

Bulls hoping for a home run storage withdrawal for the week ended Jan. 9 were sorely disappointed Thursday morning as the Energy Information Administration (EIA) reported that only 94 Bcf was withdrawn despite chilly temperatures last week. February natural gas futures, which Wednesday broke below $5 for the first time since Sept. 2006, spiraled even lower following the 10:30 a.m. EST report’s release. The contract ended up closing at $4.843, down 12.7 cents from Wednesday’s finish.

Those who were expecting a flood of LNG imports into the United States last year were sorely disappointed, but the Energy Information Administration (EIA) is optimistic that there will be a “substantial” LNG rebound this year and sustained growth thereafter. Not everyone shares EIA’s views, however. Some experts say the market will have to wait until late in 2008 before a notable influx of LNG occurs.

Those who were expecting a flood of LNG imports into the United States last year were sorely disappointed, but the Energy Information Administration (EIA) is optimistic there will be a “substantial” LNG rebound this year and sustained growth thereafter. Not everyone shares EIA’s views, however. Some experts say the market will have to wait until late in 2008 before a noticeable influx of LNG occurs.

Broiling heat and record-breaking demand across several parts of the country last week sorely taxed the U.S. power grid, but utilities and grid operators were able to successfully meet demand while avoiding a repeat of the disastrous August 2003 blackout.

Dynegy Inc. finally sparked the investor confidence it sorely needed last week following a teleconference ostensibly to report first quarter earnings. Instead, news that it had renewed its much-needed revolving credit line for $900 million 24 hours before the deadline — thus guaranteeing the company’s liquidity in even the worst case scenario — pulled the stock ahead nearly 30% in one day. Chairman Chuck Watson also appeared to soothe Wall Street nerves with his corporate-wide commitment to retain an investment credit rating, making it Dynegy’s top priority going forward.

Traders hoping for unsubscribed El Paso capacity to reduceprices at the Southern California Border will be sorelydisappointed because of last week’s announcement that an unnamedshipper signed for 1.2 Bcf/d. The southwestern pipeline said itrecontracted all of its available firm capacity for a minimum of$37.5 million in revenues for 2000. The amount reflects an increaseof 7% over the annual average revenues generated from the Dynegydeal over the past two years. Dynegy paid $70 million for 1.3Bcf/d.