Amid stronger cash market prices and another round of blackoutsin California, natural gas prices finished on a positive note forthe third session in a row Monday, as traders covered shorts in anotherwise quiet day. April finished 2.8 cents better at $5.063.
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Futures Rise and Fall on Storage Data
Buoyed by stronger cash market values and bullish speculationahead of the latest AGA storage report, natural gas futures clawedtheir way off early morning lows yesterday as buyers added to theirsummer long positions. However, that buying pressure was all fornaught because prices came cascading back down late in the session,leaving the April contract with a 4.3-cent loss for the day. Theprompt month settled at $5.236.
TECO Grabs Share of Panda’s Merchant Plants
TECO Energy’s Power Services subsidiary (TPS) has secured a muchstronger foothold in the wholesale generation market by buying astake in two huge gas-fired merchant power plants being developedby Panda Energy International and by announcing plans to build a$1.2 billion, 850 MW unit adjacent to Citgo Petroleum Corp.’s oilrefinery in Lake Charles, LA.
TECO Grabs Share of Panda’s Merchant Plants
TECO Energy’s Power Services subsidiary (TPS) has secured a muchstronger foothold in the wholesale generation market by buying astake in two huge gas-fired merchant power plants being developedby Panda Energy International. The companies announced a jointventure yesterday on the plants, which will be located in ElDorado, AR, and in Gila Bend, AZ, and will have a combined capacityto produce 4,600 MW of power. They are projected to cost $2.3billion to build. Teco’s equity committment is $960 million.
Choppy Week at Nymex Ends on a Low Note
Despite an impressive bounce Thursday afternoon and strongerover-the-counter trades Friday morning, natural gas futures werehit with a second day of losses Friday as locals deposited themarket lower after finding an intermediate layer of resistance at$4.16. The July and August contracts moved lower in lockstep, eachshedding 2.1 cents to finish the week at $4.043 and $4.022respectively. Estimated volume was 82,698.
Other Retailers Keep Rolling Over as Enron Gets Even Stronger
By agreeing last week to sell the stock of its retail marketingarm to Enron Energy Services Operations Inc. for $85 million,PG&E National Energy Group not only trimmed non-profitableassets from its portfolio, but perpetuated an industry-wide trendof major companies exiting the retail arena.
Futures Slip as Technicals and Fundamentals Clash
Despite a positive open and stronger cash prices, natural gasfutures slumped into the weekend as traders surveyed the prospectof more bearish news this next week in a market that many feel isalready overvalued. After opening at $2.81 the prompt contract wasunable to muster much in the way of upward momentum, and that setthe tone for a choppy, range-bound trading session. April finisheddown 1.2 cents at $2.774. Estimated volume confirmed the lacklustertrading, as only 43,848 contracts changed hands.
Cash Prices, Weather Has Bulls Rearing Horns
Taking a cue from stronger cash market prices, the futuresmarket continued higher yesterday as buyers pressed prices throughseveral key resistance levels. After gapping higher on the open at$2.55, the January contract moved mostly sideways before checkinglower to fill in the gap late in the morning. However, from thereit was all gravy for bulls, who bid the prompt month up 7.6 centsto its $2.585 close.
EIA: Prices to Remain Less than $3
While wellhead prices will be 40% stronger than last winter,high levels of storage and gas imports will keep them under $3 forthe better part of the heating season, the Energy InformationAdministration said in its October Short-Term Energy Outlook. Thereport was published last week.
EIA: Prices to Remain Less Than $3 This Winter
While wellhead prices will be 40% stronger than last winter,high levels of storage and gas imports will keep them under $3 forthe better part of the heating season, the Energy InformationAdministration said in its October Short-Term Energy Outlook. Thereport was published yesterday.