Twice

FERC is proposing to survey up to 300 natural gas and power traders twice — this October and next March — to determine if they have adopted voluntary guidelines for reporting more detailed information on energy trades to industry publications. The Commission said the survey would determine whether “further steps” were required to ensure the accuracy, reliability and transparency of price indices.

Like a stunned boxer that twice tries but fails to lift himself off the mat, the natural gas futures market was unable to recover Thursday following the release of storage data from the Energy Information Administration (EIA) showing a larger-than-expected 64 Bcf injection. After dropping a cool 10 cents in 10 minutes following the report, the August contract looked like it might rebound before lunchtime. However, that rally and a similar one in the early afternoon fizzled, leaving prices to sift downward and close just off their lows. At $2.902, the August contract finished with a 14-cent decline for the session.

Like a stunned boxer that twice tries but fails to lift himself off the mat, the natural gas futures market was unable to recover Thursday following the release of storage data from the Energy Information Administration (EIA) showing a larger-than-expected 64 Bcf injection. After dropping a cool 10 cents in 10 minutes following the report, the August contract looked like it might rebound before lunchtime. However, that rally and a similar one in the early afternoon fizzled, leaving prices to sift downward and close just off their lows. At $2.902, the August contract finished with a 14-cent decline for the session.

After twice failing to break to a new seven-week daily continuation chart high, natural gas futures tumbled lower in the last 75 minutes of trading Thursday as commercial and local traders took profits notched during the bull run of the last 10 days. The April contract was the hardest hit by the late sell-off, giving back 7 cents for the session to close at $2.357. The out months slipped as well but by a lesser degree, which served to widen the market’s forward carry premium.

Following a four-year upswing in spending between 1995 and 1998,domestic oil and natural gas industry expenditures for drilling inthe U.S. fell 15.2% in 1999, the American Petroleum Institute (API)reported last week.

Following a four-year upswing in spending between 1995 and 1998,domestic oil and natural gas industry expenditures for drilling inthe U.S. fell 15.2% last year, the American Petroleum Institute(API) reported.

It is often said that a market tends to fall twice as fast as itrises and yesterday’s price action in the natural gas pit was atextbook example of that. Erasing two weeks of bulls’ handiwork,the November contract burst onto the scene as spot month yesterdayand was promptly sent packing as trade and fund selling ushered itsharply lower throughout the day. A small bounce at the end of theday did little to deaden bulls’ pain. The November contract closedat $5.124, down 32.3 cents for the day.

After twice failing to bust through stubborn resistance at$4.48, natural gas futures gave back early session advancesyesterday to finish just about unchanged on the day. A slim loss inthe September contract was more than offset by modest advances inthe out months. While September finished 0.7 cents lower at $4.406,the 12-month strip was up 2.6 cents at $4.099.

It is often said that markets will fall twice as fast as theyrise and that was never more true than yesterday in the natural gaspit at Nymex. After climbing steadily over the past week to the$4.555 level Wednesday, the market was flushed lower yesterday amida torrent of profit-taking that in turn, triggered a wave ofsell-stop loss orders. Bargain hunting was seen late to stem theprice erosion, but the damage was already done.