Despite the gas futures rally that pushed May prices to contracthighs of $3.087 last Thursday, Susannah Hardesty, president ofEnergy Research and Trading, still expects a higher spike nextmonth, possibly to $3.30 for the near-month contract, asnervousness over strong summer gas and power demand reaches thetrauma stage.
Steam
Articles from Steam
Strong Bull Market Still Has Plenty of Steam Left
Although gas futures prices could take a short-term dip,possibly below $2.65, followed by a small rebound, by late May,Susannah Hardesty, president of Energy Research and Trading,expects prices to be solidly above $3, maybe as high as $3.30. Andshe’s not alone. Given the significant hype about the increase ingas-fired generation and the surge in peak summer power needs,Cynthia Kase of Kase and Company said this market could soar tounexpected heights.
Merchant Power Transmission Co.’s Gain Steam
Last week’s announcement by Montana Power that it is getting outof the energy utility business may be the start of a new push toseparate electric transmission and distribution, with an increasein merchant transmission proposals, spurred by both shareholdersand regulators of the utilities, according to one of the nation’sfirst merchant power transmission companies. U.S. electrictransmission systems collectively represent a $70 to $90 billionset of assets.
Mackenzie Delta Supplies Getting Closer
The driving force sought by promoters of Arctic natural gaspipelines is gathering steam as three senior Canadian productioncompanies revisit major northern discoveries they have sat on for aquarter of a century of unfavorable markets.
Slight Break in Heat Allows Prices to Level Off
The furious upward rush of swing cash prices finally ran out ofsteam Tuesday, leaving most of the market in a consolidation andstabilization mode. Except for a nickel rise in Transco’s Zone6-NYC pool and milder increases on several Midcontinent pipes, flatnumbers were the order of the day at nearly all eastern points.Although the Midwest and Northeast market areas had cooled off abit since Monday, forecasts for a heat wave to re-intensify laterthis week kept prices from retreating, a marketer said.
Scarcity of Suitable Gas Partners Driving M&As
The pace of announced mergers and acquisitions (M&A) haspicked up steam in the last few weeks because electric utilitiesare realizing that the pool of potential natural gas targets isquickly dwindling, according to a Merrill Lynch & Co. report.
Futures Downtrend Picks Up Steam
Natural Gas futures tumbled late in the trading session Tuesday,breaking momentarily below major support at $1.945, before settlingat $1.951. The nearly 15-cent slide exhibited by the Augustcontract comes on the heels of a nearly 3-week decline, leavingmany traders wondering if Tuesday’s big move lower was the end ofthe downtrend or one just picking up speed. Estimated volume of106,004 contracts favored the later.
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.
Most Points Leveling Off, But Northeast Citygates Soar
This week’s run-up in cash prices apparently hadn’t run out ofsteam completely Wednesday, but most of the new increases weresmall, and several points either flattened out or, as in the caseof Northern Natural-demarc and Chicago citygates, were starting toretreat from their previous heights.