Stagnant

Forecasts of moderately higher natural gas demand, a spike in domestic output, a “healthy and comfortable” level of storage, a slightly warmer winter and a stagnant economy point to flat pressure on wholesale gas prices going into the winter heating season, although there may not be an “overnight impact” on consumer bills, according to the Natural Gas Supply Association’s (NGSA) winter outlook released Thursday.

To revive his stagnant reform agenda, Mexican President Vicente Fox has reshuffled his Cabinet and replaced Energy Minister Ernesto Martens with Felipe Calderon, a former leader of the ruling National Action Party, or PAN, which now controls Congress.

To revive his stagnant reform agenda, Mexican President Vicente Fox has reshuffled his Cabinet and replaced Energy Minister Ernesto Martens with Felipe Calderon, a former leader of the ruling National Action Party, or PAN, which now controls Congress.

With at least a couple of traders starting to express boredom over a stagnant market, moderate softness remained in command at most points Tuesday. Just as they have almost every day so far in the new year, some prices swam against the general tide: several instances of flat to up to more than a quarter higher numbers were seen in the Gulf Coast, Midcontinent/Midwest and West.

With North American natural gas supply remaining stagnant at about 71 Bcf/d over the last five years, and an estimated 109 Bcf/d of supply expected to be necessary by 2015, El Paso Chairman William A. Wise says the time for liquefied natural gas (LNG) has come.

With North American natural gas supply remaining stagnant atabout 71 Bcf/d over the last five years, and an estimated 109 Bcf/dof supply expected to be necessary by 2015, El Paso ChairmanWilliam A. Wise says the time for liquefied natural gas (LNG) hascome.

What goes up, must come down,” was one trader’s description ofyesterday’s late sell-off in the natural gas pit at Nymex. However,a more appropriate expression might have been “what can’t keepgoing up, must come down,” because after pressing through stubbornresistance at $3.20 Monday morning, the June contract hadlanguished on either side of $3.20 for two days, unable to attractmuch in the way of follow-through buying. That range-bound tradingcame to an abrupt end Wednesday when fresh storage data wasreleased. The June contact finished down 9.1 cents at $3.126.

“Dead” was the popular word used by traders to describe thestagnant cash market Thursday, where prices showed very little, ifany, change from the prior day. Most sources believe that shortcovering is the main factor helping cash maintain current pricelevels amid the lack of any meaningful fundamental support.

Unlike much of last month, when Western markets persistentlydisplayed weakness while their Eastern counterparts were rising, itis the West flexing a bit of price muscle this week. Rockies pipeswere back up into the $1.30s Tuesday after several had made a briefsojourn into sub-$1.30 territory Friday and Monday. The reason forthe rebound mystified one trader. “It’s not that cold in theregion, so go figure,” he said, adding maybe it was just a resultof the normal “tug of war” between gas buyers and sellers.