Sweltering

Citing the sweltering temperatures, power generation demand and record crude oil prices, the Energy Information Administration (EIA) in its Short-Term Energy Outlook for July said it sees spot natural gas prices averaging $7.41/Mcf through the end of September, up from its previous projection of $6.50-$7.00 for the remainder of the summer (see Daily GPI, June 8).

Sweltering heat and higher cash prices tipped the scales inbulls’ favor again yesterday at the New York Mercantile Exchange asprices snapped back with a one-two combo to easily recoup thealmost nickel decline posted during Tuesday’s Access trading. Thefirst spike occurred at the open as speculators were seen loadingup their long positions for the second morning in a row. After thatinitial surge the market moved mostly sideways until right beforethe close, when a round of market on close (MOC) buy orders liftedthe August contract 2.7 cents to its $2.601 final resting place.For the fifth day in a row, estimated volume topped the 100,000mark at 139,502 contracts.