Strength

Maintaining the momentum from the final two days of trading last week, natural gas futures on Monday — aided by strength in equities and petroleum futures — continued higher despite the lack of direct bullish fundamentals. The April contract climbed 6.7 cents to close at $4.294.

Natural gas futures bulls were licking their lips Friday as the March contract showed some real strength on the day. Despite the temporary warm-up forecasted for much of the country, prompt-month futures pushed higher on the day to close at $4.774, up 13.2 cents from Thursday’s finish and 35.7 cents higher than the previous week’s close.

For gas producers, nothing fails like success, it would seem, as prices continue to founder on the strength of robust production out of unconventional plays. With normal weather, the industry will face record inventories at the end of next October, warned Barclays Capital analysts in a note last Wednesday.

For gas producers, nothing fails like success, it would seem, as prices continue to founder on the strength of robust production out of unconventional plays. With normal weather, the industry will face record inventories at the end of next October, warned Barclays Capital analysts in a Wednesday note.

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.

The Alberta government is predicting that sustained strength in natural gas prices will fuel a C$3 billion (US$2.8 billion) bonus in its royalty collections for its current fiscal year, ending March 31.

The Alberta government is predicting that sustained strength in natural gas prices will fuel a C$3 billion (US$2.8 billion) bonus in its royalty collections for its current fiscal year, ending March 31.

Traders put in a new low for the move in September natural gas futures in early morning trade on Tuesday, which, combined with strength in petroleum liquids markets, triggered a wave of short-covering that resulted in a $7.976 close, up 8.8 cents from Monday’s finish. Despite the gains, some market experts believe the bears are still running the show and that the market could still shear off another 40 cents or so before it is finished.

September natural gas futures rose as traders cited geopolitically derived strength in crude oil and hints of tropical development by a leading forecaster as giving the market a late-week lift. September natural gas rose 27 cents to $9.389 and the October contract tacked on 27 cents as well to finish at $9.494. September crude oil rose $1.02 to $125.10/bbl after trading as high as $128.50.