Tumble

The physical market answered Tuesday futures double-digit decline with an overall tumble on average of 9 cents Wednesday as the screen continued to drop and weather forecasts moderated. Northeast points were particularly hard hit as spot power prices plunged. At the close of futures trading July had shed 6.7 cents to $2.418 and August was down by 6.9 cents to $2.471. July crude oil suffered a $2.94 loss to $87.82/bbl.

After reaching a two-month high for the spot contract on Tuesday at $4.494, the resulting tumble that began Tuesday afternoon spilled over into Wednesday’s regular trading session as June futures plummeted 18.4 cents to close at $4.158.

Nexen Inc.’s decision to scale down its marketing division paid off in 1Q2009, but the Calgary-based producer still saw earnings tumble 79% compared with the same period last year.

Nexen Inc.’s decision to scale down its marketing division paid off in 1Q2009, but the Calgary-based producer still saw earnings tumble 79% compared with the same period last year.

Chesapeake Energy Corp.’s shares took another tumble Wednesday after the company cut its cash flow outlook for the next two years on falling natural gas prices.

Coming off a Monday that featured a jittery Wall Street and a titanic tumble in energy commodities, April natural gas futures on Tuesday went into correction mode as some traders suggested that a more sideways-trending market coupled with high volatility lies ahead in the near term. The prompt-month contract reached a high of $9.420 before closing out the day at $9.414, up 31.4 cents from Monday.

Prices continued to tumble Tuesday as bearish influences remained in play: widespread moderate weather, negative futures guidance and the growing lack of storage space to stash gas not needed for current burns.

Prices began what may be an extended period of softening Thursday, dropping at all points between slightly under a nickel to about 35 cents. A large majority of the declines were in double digits.

Prices began what may be an extended period of softening Thursday, dropping at all points between slightly under a nickel to about 35 cents. A large majority of the declines were in double digits.