Straight

A small loss by intrastate OGT and flat quotes at several points averted a third straight day of across-the-board upticks Thursday. Cooling trends throughout most of the eastern United States easily outweighed mostly moderate conditions in much of the West in sustaining further gains at most points. A prior-day screen loss had little effect on general cash market firmness Thursday but may have more impact Friday.

Natural gas futures slipped lower for the third straight session Monday as the bullish triumvirate — hurricanes, inflation and short-covering — was no match for the continued and undeniable reality of a bearish supply picture. The September contract closed at $3.641, down 3.3 cents for the session and well off the $4.045 high notched just a week ago.

August natural gas futures limped higher for a third straight regular session on Tuesday as traders were having a hard time pinpointing a reason for a serious move in either direction. The front-month contract added 1.6 cents to close at $3.705.

Chevron Corp. Friday posted a 112% rise in quarterly net income, its second straight quarter reporting record high earnings, but saw domestic natural gas production and worldwide production of gas and oil continue to decline.

Chevron Corp. Friday posted a 112% rise in quarterly net income, its second straight quarter reporting record high earnings, but saw domestic natural gas production and worldwide production of gas and oil continue to decline.

As the stock market suffered its eighth straight day of losses Friday and the Dow flirted with the 8,000 mark, several more domestic oil and natural gas producers reported that they were cutting their planned capital expenditures (capex) for the rest of the year and/or 2009 and were rolling back their drilling programs or postponing planned acquisitions in order to preserve capital liquidity. Producers said they also had taken steps to shore up their bank credit lines.

Natural gas futures followed the Dow Jones Industrial Average lower for a second straight day Tuesday while crude recorded a rebound of sorts. November natural gas shaved another 6.7 cents to close at $6.768, further validating Monday’s penetration of long-holding support at $7.028.

Thanks to a second straight day of futures strength Wednesday, cash prices were able to continue climbing at a majority of points Thursday. However, quotes tanked by triple-digit amounts in the Midcontinent and Rockies. Sources cited a common cause for the great price weakness in both regions: essentially no local weather-based demand at all.

After last week ended with two straight days of across the board declines, mixed price movement returned to the market Monday. Further drops dominated in the Gulf Coast and Northeast and to some degree in the Midwest. Quotes were mostly higher in the Midcontinent and West.