May natural gas futures opened higher Monday but quickly tumbled nearly 20 cents to land solidly in the loss column, as falling oil markets were able to tug natural gas lower. At the close May was off by 6.6 cents to $4.138 and June had declined 7.4 cents to $4.190. May crude oil swan-dived $2.54 to $107.12/bbl.
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As could be expected following Thursday’s 36.8-cent drop by June futures prompted by a bearish storage report, cash numbers tumbled at nearly all points Friday.
Canadian natural gas exporters are taking a beating. Volumes fell by 17%, prices tumbled 68% and revenues plunged 74% in May, according to the latest trade records kept by the National Energy Board (NEB).
Enterprise Products Partners 2Q2009 earnings tumbled 29% compared with 2Q2008 while Duncan Energy Partners earnings leaped 74% in the same period based in large part on earnings it acquired in a deal with Enterprise last year, the companies said last week.
Enterprise Products Partners 2Q2009 earnings tumbled 29% compared with 2Q2008 while Duncan Energy Partners earnings leaped 74% in the same period based in large part on earnings it acquired in a deal with Enterprise last year, the companies said Monday.
While the stock market tumbled lower Wednesday on more financial crisis news, energy futures and other commodities headed in the opposite direction on the day as investors sought refuge in tangible goods. In the second worst session of the year, Dow industrials fell more than 400 points, while October natural gas surged 63.1 cents higher to close at $7.910/MMBtu and October crude gained $6.01 to finish at $97.16/bbl.
Calgary-based Paramount Resources Ltd.’s shares tumbled on news Friday that it will sell its oilsands leases and shut-in and producing natural gas rights in the Surmont area of northeastern Alberta to MEG Energy Corp. for C$301.7 million (US$284.2 million).
It’s hard to deny that market fundamentals are looking pretty bearish for the last half of December. Cash prices tumbled about 30-85 cents on Monday from weekend levels, depending on the location, except for a few unusual cases in the already-depressed Rockies where Questar posted a small gain.
Natural gas futures prices showed no signs of recovery Wednesday as the near-month contract tumbled 12.5 cents to end the day at $5.449 and the winter months again fell even harder than the prompt month, indicating steady selling pressure in light of high storage levels and diminishing hurricane concerns. The winter strip (November-March) fell 21.9 cents to $8.783.