Unconfirmed

Following months of unconfirmed speculation that Nymex Holdings might be on the sale block (see Daily GPI, June 18), the parent company of the New York Mercantile Exchange, a global energy exchange powerhouse, confirmed Tuesday that the company has been in talks with “certain parties” with regard to a “potential business combination.”

As moderating temperature forecasts remained unconfirmed, January natural gas futures took the chance to test their surroundings. After putting in a $13.380 low in morning trade, the prompt month rebounded in the afternoon, jumping more than 40 cents in the final hour of trading to close at $14.043, up 42 cents from Friday’s close.

Citing a high rate of unconfirmed transactions at Uinta Lateral delivery points, CIG said it has recently experienced a critical oversupply situation on that portion of its system, resulting in higher than appropriate mainline pressures that “have created problems receiving scheduled quantities of gas from the attached production areas.” In response, CIG declared a Strained Operating Condition for the Uinta and Parachute laterals that took effect Friday until further notice. See the bulletin board for SOC conditions.

Besieged Royal Dutch/Shell Group last week cut its proven oil and natural gas reserves again amid an unconfirmed report that the Department of Justice has opened an inquiry into whether the company or its executives violated any U.S. laws by failing to timely report the overbooking of reserves.