Strengthening

Natural gas cash market prices across the country on Monday were mostly neutral to slightly down as traders kept a watchful eye on a strengthening tropical wave off the West African coast that could become the first real threat to the United States of the 2009 Atlantic hurricane season.

With overall weather fundamentals strengthening only marginally, prices continued to fall at a slight majority of points Monday.

A strengthening U.S. dollar and a weakening oil complex dealt the natural gas futures market a one-two combination Friday, dropping September to a new low of $8.215 for the downmove, which began after August futures peaked at $13.694 on July 2. The prompt month contract finished at $8.248, down 32.3 cents for the session and off a whopping $1.141 for the week. The October contract also took it on the chin, suffering a loss of 32.9 cents and $1.164 for the day and week, respectively, to finish at $8.330.

As the anniversary of Hurricane Katrina approached, the energy industry was watching ominous Tropical Storm Ernesto, which was strengthening in the Atlantic Basin Friday night. As of 5 p.m. EDT Friday the National Hurricane Center (NHC) was predicting that Ernesto would become the season’s first hurricane by Monday and could track right into the center of the Gulf of Mexico possibly targeting the Texas or Louisiana coasts.

As the one-year anniversary of Hurricane Katrina approached, the energy industry was watching a possibly ominous Tropical Storm Ernesto, which was strengthening in the Atlantic Basin.

The Senate Judiciary Committee approved by voice vote Thursday a bill that seeks to tame natural gas and crude oil prices by strengthening antitrust enforcement and bolstering competition in the energy industry.

The Federal Energy Regulatory Commission on Thursday issued a series of orders aimed at strengthening its protections against market manipulation in the natural gas and electricity industries.

Cash prices disconnected once again Friday from “following the screen,” but this time instead of strengthening after prior-day futures weakness as they had done on Tuesday and Wednesday, most points dropped despite Thursday’s 17-cent Nymex gain.

Its claim to fame may be heavy oil production, but Calgary-based Husky Energy Inc. also is strengthening its upstream portfolio, announcing last week that it may consolidate through acquisitions or sales to improve its production output in the Western Canada Sedimentary Basin (WCSB).