Sway

Hot weather from the mid 80s to around 110 was expected to dominate the next-day forecast, but that failed to sway cash traders, who paid more attention to continuing futures weakness in sending prices lower at virtually all points Tuesday.

After dropping 5% Thursday in reaction to the overwhelmingly bearish storage news, the natural gas futures market rebounded Friday as traders covered shorts ahead of the weekend. Adding to the bullish euphoria over the expected chill over the weekend, traders were reticent to hold short positions for fear that the market would rally if another round of chilly forecasts were issued Monday morning.

It’s not as if Westar Energy hasn’t seen enough trouble, but it’s now reported that top executives of the Kansas-based energy company believed $56,500 in contributions to political groups associated with four leading Republican lawmakers last year would buy them exemption from a controversial federal utility law, The Washington Post reported Friday.

It’s not as if Westar Energy hasn’t seen enough trouble, but it’s now reported that top executives of the Kansas-based energy company believed $56,500 in contributions to political groups associated with four leading Republican lawmakers last year would buy them exemption from a controversial federal utility law, The Washington Post reported Friday.

Upbeat comments by Mirant Corp. CEO Marce Fuller failed to sway Wall Street last week after the company announced it is working to restructure more than $5 billion in debt — warning that there are substantial risks if it fails to successfully complete its negotiations.

Upbeat comments by Mirant Corp. CEO Marce Fuller failed to sway Wall Street Wednesday after the company announced it is working to restructure more than $5 billion in debt — warning that there are substantial risks if it fails to successfully complete its negotiations.

Despite launching an ambitious restructuring plan to boost liquidity by $2 billion and carry it safely into 2003, Dynegy was hit with further downgrades by all three credit ratings’ services, and its stock dipped precipitously low as the week progressed.

Liquefied natural gas (LNG) opportunities continue to hold sway at El Paso Corp., and the plans announced last year to build more storage terminals in North America remain on track, the company said during an analysts’ meeting Wednesday. Already holding significant regasification capacity at all the major U.S. LNG terminals, El Paso said it plans to build a similar network globally and link its supplies to build out an energy network fueled by natural gas, power and petroleum.

Despite languid cash market prices and plentiful supply heading forward, natural gas futures exploded higher Friday as traders covered shorts and squared their books ahead of the four-day holiday weekend (some cash traders admitted having to work a half-day Monday, but the futures market will remain closed until 7 p.m. EST Christmas Day for Access trading and until 10 a.m. Wednesday for regular pit trading). By virtue of its 20.9-cent rally and $2.895 closing price, the January contract broke to new three-week highs Friday, and moved above the February contract for the first time since Nov. 2. Heavy trading activity punctuated the move, with 116,361 in estimated volume.