As 2010 got under way biting cold settled in across the northern tier of states, sending prices spiking in the Northeast, while pipelines began tightening restrictions with an eye to an extended period of below-normal temperatures and peak demand.
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Most Points Fall on Screen, Storage Bearishness
Prices continued to fall at nearly all points Friday, with previously spiking Northeast citygates taking part in the general softness. The previous Wednesday’s bearish storage report and the accompanying 23.7-cent drop by February futures that day were the primary cash market depressants, abetted by moderating weather trends in the South, Midcontinent and parts of the Midwest along with the weekend’s typical decline of industrial load.
North American Rig Count Climbs as Prices Soar
With energy futures prices spiking over the last few months, the U.S. oil and gas industry responded in kind as the number of rigs actively seeking new supplies jumped during February, according to the Baker Hughes Inc. rig count.
North American Rig Count Climbs as Prices Soar
With energy futures prices spiking over the last few months, the U.S. oil and gas industry responded in kind as the number of rigs actively seeking new supplies jumped during February, according to the Baker Hughes Inc. rig count.
Most Prices Outside Rockies Fall; 1.3 Bcf/d Shut In
Despite nearly 1.3 Bcf/d of offshore production being taken off the market due to a storm system in the Gulf of Mexico (GOM), cash prices bowed to a major prior-day futures drop and generally weak weather fundamentals as nearly every point outside the Rockies fell Thursday.
Futures Probe Lower After Shrugging Off Storage Report
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.
Northeast Keeps Spiking; Rest of Market Mixed
While harsh winter weather had already receded in much of the West and was due to do so to varying extents in the South and Midwest, it was still making itself at home in the Northeast. The result was a continuation of Northeast citygate spikes Tuesday, while the rest of the market either recorded considerably more modest gains or saw declines setting in at quite a few points in the West and Midcontinent.
Futures Rebound 6% on Trio of Bullish Factors
It was easy to be a natural gas futures bull Tuesday. In addition to another round of frigid forecasts and spiking prices in the cash market, natural gas futures traders had added buying incentive as crude oil prices spiked following a deadly explosion at an Algerian gas liquefaction plant Monday.
Prices Fall on Low Holiday and Weather Demand
Only a day after spiking on the basis of much colder weather that was still several days away, prices retreated Wednesday despite forecasts that parts of the U.S. and Canada would be caught up in sub-freezing temperatures before traders returned to their offices this week. The market did not give back as much as it had gained Tuesday, as losses tended to range from about a nickel to 40 cents.
Profit-Taking Rescinds a Portion of Monday’s Rally; Technicals Remain Mixed
After spiking 43 cents on frenzied buying Monday, natural gas futures sifted lower Tuesday as traders took profits on bearish weather forecasts as well as expectations calling for a large storage injection to be announced later this week.