The June Nymex contract made it 2 for 2 for up days this week,as the spot month gained another 4.1 cents to settle Tuesday at$2.256. Sources said the market followed cash prices higher butalso warmed further gains may be limited. “This is the fifth timeJune has failed to rise above $2.27. Moreover, the daily lows havebeen rising also, so sooner or later something’s going to have togive,” an analyst told GPI.
Spot
Articles from Spot
ICF Kaiser: New Pipelines Will Impact Prices Nationwide
Dramatic spot price changes are expected throughout the U.S.over the next two years following the construction of proposedmajor gas pipeline projects and development of gas reserves tosupport them. A new analysis released yesterday at GasMart Power’98, NGI’s annual energy conference, by ICF Kaiser focuses on howprices and volumes would shift following several likelydevelopments: the construction of Alliance Pipeline along withexpansions of Foothills/Northern Border, construction of the Vectorand Millennium projects to move gas from Chicago to East Coastmarkets, completion of the Sable Island project and associatedMaritimes and Northeast Pipeline moving gas down the East Coast andincreased gas production in the Gulf of Mexico.
Storage Data May Push June Futures Lower
The June Nymex contract made its debut as the spot month byslipping 1.3 cents to settle $2.298 on Wednesday. Volume wasmoderate, with an estimated 40,133 contracts changing hands.
May Futures Expire Lower, Rest of Strip Higher
After all the volatility surrounding the May Nymex contract oflate, the spot month spent what is typically one of any contract’smost volatile trading days (its expiration) by slipping only 0.4cents to settle Tuesday at $2.262. A trader said late strengthpushed June and the rest of the outmonths up a couple of cents forthe day, and noted May would have expired with a gain, had it notbeen for a fund dumping a large position within the last 30 minutesof trading.
California Electric Competition Kicks Off
California’s retail electric market kicks off in the earlymorning hours today (March 31) with the state-chartered wholesalespot market, the power exchange (PX), processing a market-clearingprice and generation schedules for another newly created statepublic benefits organization, the independent system operator(ISO), that will run the state transmission grid.
April Futures Looking To Expire Quietly
The April Nymex contract crept 3.5 cents higher to $2.365 onWednesday, as traders continue to hold the spot month to smalldaily changes ahead of the contract’s expiration this Friday. Aprilmanaged to reach $2.40 before intraday profit taking drove thecontract back, a source told GPI. Total estimated volume came in at70,152 contracts.
Bullish Futures Momentum Runs Out of Steam
The recent surge in natural gas futures prices became so greaton Monday that the spot April contract came within 4 cents ofreaching its all-time high trade of $2.460. However, speculatorswere quick to “pounce on a selling opportunity” at that price, theresult of which left April up just 0.8 cents for the day at $2.351.Total volume was estimated at 88,053 contracts.
April Futures are Home in Their Range
The April NYMEX contract gained a meager 1.8 cents to $2.155 onMonday, as traders continue to hold the spot month to a tighttechnical trading range. The bottom of that range was confirmedwhen April bounced off major support at $2.105. Despite the narrowtrading band, estimated volume still managed to reach 33,502 totalcontracts.
Technicals Push April Futures Lower
The April Nymex contract fell 2.9 cents to $2.292 on Monday,following the spot month’s failed attempt to clear a majorresistance level. “April was in a two hurdle race today, but ittripped on the second hurdle,” a trader told GPI. “On the one hand,April was able to break out of the symmetrical triangle formationby moving above $2.34. However, April immediately fell back once itfilled in the chart gap at $2.355. There were quite a few standingsell orders at that price, so it’s no wonder the contract fellback,” he said.