Tuesday’s uptick in near-month natural gas futures was exposed as mere short-covering on Wednesday as the May contract returned to the recent trend of plumbing the downside. The front-month contract reached a low of $3.860 before closing out the regular session at $3.869, down 10.4 cents from Tuesday’s finish.
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Industry Briefs
Denmark-based Maersk Oil has purchased Devon Energy Corp.’s 25% stake in the deepwater Gulf of Mexico Jack prospect in the Lower Tertiary Trend. Maersk in December had agreed to pay $1.3 billion to purchase Devon’s interests in three Lower Tertiary projects: the Jack, St. Malo and Cascade (see Daily GPI, Dec. 23, 2009). However, working interest partners in St. Malo (Chevron Corp.) and Cascade (Petroleo Brasilerio) exercised preferential rights to purchase Devon’s interests (see Daily GPI, Jan. 26). Devon said the aggregate purchase price of its interests in the three prospects remains $1.3 billion; closings are expected by the end of March.
Industry Briefs
Denmark-based Maersk Oil has purchased Devon Energy Corp.’s 25% stake in the deepwater Gulf of Mexico Jack prospect in the Lower Tertiary Trend. Maersk in December had agreed to pay $1.3 billion to purchase Devon’s interests in three Lower Tertiary projects: the Jack, St. Malo and Cascade (see Daily GPI, Dec. 23, 2009). However, working interest partners in St. Malo (Chevron Corp.) and Cascade (Petroleo Brasilerio) exercised preferential rights to purchase Devon’s interests (see Daily GPI, Jan. 26). Devon said the aggregate purchase price of its interests in the three prospects remains $1.3 billion; closings are expected by the end of March.
Marketers Report 4% Decline in 3Q09; Near Term ‘Volatile and Tricky’
While economists say the recession has ended and some economic indicators have begun to trend upward, continued weak demand led to another decline in natural gas marketing during the third quarter, with the total volume sold in North America tumbling 4% — nearly 5 Bcf/d — according to NGI’s 3Q2009 Top North American Gas Marketers Ranking.
Marketers Report 4% Decline in 3Q09; Near Term ‘Volatile and Tricky’
While economists say the recession has ended and some economic indicators have begun to trend upward, continued weak demand led to another decline in natural gas marketing during the third quarter, with the total volume sold in North America tumbling 4% — nearly 5 Bcf/d — according to NGI’s 3Q2009 Top North American Gas Marketers Ranking.
$6 Gas Necessary to Halt Production Drop, Producer Says
Canadian production declines are part of a continent-wide trend that has the potential to cut the North American natural gas supply glut by 5-8 Bcf/d next year, according to Richard Moorman, strategic analysis manager for Houston-based Southwestern Energy Co.
Producer: $6 Gas Necessary to Halt Production Drop
Canadian production declines are part of a continent-wide trend that has the potential to cut the North American natural gas supply glut by 5-8 Bcf/d next year, according to Richard Moorman, strategic analysis manager for Houston-based Southwestern Energy Co.
Prices Record Big Drops Across the Board
The softening trend of cash prices appeared to have slowed to a near-standstill Tuesday as most losses were in single digits that day and were nearly offset by flat to higher locations. However, larger drops extended to a majority of points on the following day, and the downhill momentum got even steeper Thursday as mostly large declines (all in double digits) swept through the entire market.
Futures Rebound, But Traders Keep Hooves and Horns in Storage
Continuing the trend of back-and-forth swings ahead of expiration Wednesday, August natural gas futures, unable to ignore Thursday’s economic rebound and the recent strength in other energy commodities, climbed 14.5 cents during Friday’s regular session to close at $3.695, 2.6 cents higher than the previous week’s finish.
Futures Inch Lower; Summer LNG Impact Debated
While April natural gas futures on Wednesday continued their recent trend of shaving a few pennies a day, the real fireworks could be found in neighboring crude futures, which saw the April contract fall $3.38 to close at $42.33/bbl, just two sessions after trading as high as $48.83/bbl. April natural gas closed Wednesday at $3.798, down 4.2 cents from Tuesday.