Spurs

Diversity of supply adds up to security of supply, Tim Bullock, president of BP Gas and Power North America, told about 1,200 Rocky Mountain producers gathered in Denver last week. “We’re going to need all of it, all sources of supply, including Alaskan gas and LNG, if we’re going to keep the price of natural gas at a level that allows demand to continue to grow,” he said.

Diversity of supply adds up to security of supply, Tim Bullock, president of BP Gas and Power North America, told about 1,200 Rocky Mountain producers gathered in Denver Tuesday. “We’re going to need all of it, all sources of supply, including Alaskan gas and LNG, if we’re going to keep the price of natural gas at a level that allows demand to continue to grow,” he said.

Hype or not, Tropical Storm Claudette was the primary driver behind further moderate advances in the cash market Wednesday. Cold fronts were causing much of the Midwest and Northeast to lose some of the air conditioning load that had kept the regions sweltering earlier in the week, but major heat continued to dominate the weather picture in the West (outside the Pacific Northwest and California coast) and South. The screen wavered on either side of flat before eking out a meager gain of 1.7 cents on the day, and thus had little new influence on cash prices, one trader said.

Change was in the air right from the outset of natural gas futures trading Wednesday. After opening higher in three out of the last four sessions, gas futures gapped lower at the opening bell Wednesday amid a concert of fund and local selling. However, when it became apparent that last week’s lows in the mid $2.70s were unobtainable, the market reversed its direction and climbed through several key levels of resistance in the last hour of trading. The August contract gained 15.3 cents to close at $3.042, its highest daily settle since July 3. At 151,295, volume was extremely heavy.

Change was in the air right from the outset of natural gas futures trading Wednesday. After opening higher in three out of the last four sessions, gas futures gapped lower at the opening bell Wednesday amid a concert of fund and local selling. However, when it became apparent that last week’s lows in the mid $2.70s were unobtainable, the market reversed its direction and climbed through several key levels of resistance in the last hour of trading. The August contract gained 15.3 cents to close at $3.042, its highest daily settle since July 3. At 151,295, volume was extremely heavy.

Reliant Resources, the second energy IPO in as many weeks, lit up the New York Stock Exchange with its initial public offering last Wednesday as the most active stock in heavy trading. The Houston-based unit of Reliant Energy opened the day at a stock price of $30 — a price that has increased four times since December–and ended 10% up, closing at $33.02 on its first day.

Reliant Resources, the second energy IPO in as many weeks, lit up the New York Stock Exchange with its initial public offering yesterday as the most active stock in heavy trading. The Houston-based unit of Reliant Energy opened the day at a stock price of $30 — a price that has increased four times since December — and ended 10% up, closing at $33.02.

A moderate rally at eastern points Monday, combined with spikes in the Rockies and at the Southern California border, must have surprised at least a few traders who were not anticipating any respite from last week’s softness.

Snow and cold temperatures in the Great Lakes and the Northeastyesterday and some follow-through buying on Friday’s strength sentgas futures to a new all-time high of $6.360/MMBtu. December endedthe session up 14.9 cents to $6.249/MMBtu.