Sustaining

Except for an enclave of still-rising points in the New England market, the latest cold spell wasn’t any more successful in sustaining a price rally than others in recent weeks have been. Modest warming trends in the Midwest and lower Northeast/Mid-Atlantic, along with a plunge of 20.6 cents by December futures a day earlier, pushed a large majority of points lower by double-digit amounts Tuesday.

Natural gas price hedges have played a big part in sustaining the onshore rig count to date, but that may not be the case in 2011, Barclays Capital analysts said last week. What may be key, they said, are 2011 forward prices.

Natural gas price hedges have played a big part in sustaining the onshore rig count to date, but that may not be the case in 2011, Barclays Capital analysts said this week. What may be key, they said, are 2011 forward prices.

Natural gas and oil exploration and development in Texas continued to decline through March for the fifth consecutive month, sustaining a trend that may lead to severe job losses in the state and ultimately skyrocketing energy prices, energy economist Karr Ingham said Monday.

A few Gulf Coast points joined the Florida citygate and most of the Northeast/Mid-Atlantic citygates in sustaining Tuesday’s overall price advance through Wednesday, but most of the market dropped in response to some warming trends either already under way or in the forecast, and to relaxation or elimination of some cold weather-related pipeline restrictions.

Monday’s 37.4-cent advance by October futures may have looked impressive, but it proved to be largely ineffective in sustaining cash market firmness. Mixed pricing Tuesday that stayed close to flat in many instances but leaned mostly to the downside dominated in non-Rockies markets. Meanwhile, the Rockies were beginning to recover from Monday’s price massacre with fairly substantial increases, but still were averaging less than a dollar.

Growing natural gas supply, combined with weak demand, is sustaining gas-price weakness, which may in turn lead to increased pressure on exploration and production (E&P) shares, according to energy analysts, who have warned that without a major event before the next heating season — such as a hurricane in the Gulf of Mexico — natural gas prices will remain low for several months.

Growing natural gas supply, combined with weak demand, is sustaining gas-price weakness, which may in turn lead to increased pressure on exploration and production (E&P) shares, according to energy analysts, who warned this week that without a major event before the next heating season — such as a hurricane in the Gulf of Mexico — natural gas prices will remain low for several months.

The futures market opened lower on Thursday, but aftersustaining an initial round of selling, the prompt month managed toclaw its way back up to $1.817, a 0.2 cent decline for the day.That left the September contract still perched just above long term support at $1.78 yesterday, trading within a narrow 4-cent range.Estimated volume registered an unremarkable 40,943.