Spiraled

Natural gas futures values spiraled lower Thursday after the 266 Bcf natural gas storage withdrawal for the week ending Jan. 8 failed to set a new all-time single-week record. While the number still came in above most industry estimates, it appeared that some traders were holding out for a decline of more than 274 Bcf, which was recorded for the week ending Jan. 25, 2008 and stands as the single-week record.

October natural gas futures on Friday picked up where the expiring September contract left off on Thursday as the new prompt-month contract spiraled lower to close the week’s final regular session at $3.033, down 17.3 cents from Thursday’s finish.

April natural gas spiraled lower Friday as traders noted liquidation of earlier long positions and had to factor in continuing negative economic news. April natural gas futures fell 14.3 cents to $3.945, and the May contract tumbled 15.9 cents to $4.017. April crude oil rose $1.91 to $45.52/bbl.

September natural gas futures spiraled lower for a third consecutive session Wednesday, creating new lows on its way to a close of $5.578, down 23.9 cents from Tuesday’s close. Since Hurricane Dean set firm sights on a more westerly Gulf of Mexico-sparing course over the weekend, the prompt-month contract has shed an astounding $1.432.

After running up and hitting the key $8 resistance level late last week, July natural gas futures spiraled lower on Monday, following a well-worn trading pattern of the last few months. The prompt month settled at its low of the day at $7.690, down 22.8 cents from Friday’s close.

Exhibiting a symmetry not often seen in the hectic world of natural gas futures trading, prices spiraled lower Thursday on bearish storage data, exactly retracing the gains seen following last Thursday’s bullish storage report. Last Thursday, the Energy Information Administration (EIA) reported a lower-than-expected 74 Bcf injection and this week the EIA reported a greater-than-expected 82 Bcf refill. In both instances, the price reaction was immediate and substantial. On Aug. 7 the market leaped 33.7 cents higher, while Thursday the market dropped 28.8 cents to close at $4.891.

After climbing to a new two-week high Friday, natural gas futures spiraled lower Monday morning as traders learned that forecasts calling for extreme cold last week have been tempered. Also at work, market-watchers agree, is residual selling following a neutral to bearish storage report released Friday.

Several former Enron Corp. executives, who left the company last July and long before it spiraled into bankruptcy, have launched Celeren Corp., which will provide risk management energy services through the sale of energy outsource products for small- to mid-sized businesses and institutions. The Philadelphia-based company also will offer independent power generation services. Celeren, which will serve customers nationwide, will offer commodity procurement and management; capital improvements; financing; and operation and maintenance. Thomas A. Brigger, former Mid-Atlantic regional manager for Enron Energy Services (EES) is CEO and Donald S. Parker, a former regional director for EES, is COO.

In a session that had a little for both bull and bear, natural gas futures spiraled higher early Thursday only to crash lower late in the day as traders were finally successful breaking beneath support. In doing so the prompt contract slipped 5.9 cents lower to close at $4.054.