Uninspired

March natural gas futures inched higher in uninspired trading Friday on the New York Mercantile Exchange. Short-term traders see the market still vulnerable to continued price erosion, but those with a longer-term perspective see now-average supply levels keeping any further market deterioration in check.

Natural gas futures slid lower in uninspired trading Monday and traders have begun to question the markets ability to test the upper end of its trading range. June futures fell 1.8 cents to $4.017 and July shed 3.1 cents to $4.075. July crude oil added 17 cents but the remaining contract months posted losses.

Natural gas futures rose Friday in light, uninspired pre-holiday trading, and although futures have rebounded nicely from widely recognized $7 support, Friday’s gain was linked to surging crude oil prices.

After a brief and uninspired upside push was thwarted, naturalgas futures continued lower yesterday as follow-through sellingtook prices to their lowest level since April. No fresh news wasseen influencing prices, and as a result bears remained solidly incontrol, traders said. The August contract finished down an evennickel at $2.141.

In sharp contrast to the frenzy and volatility during the monthof September, October futures trading has been a model ofcomplacency, where one day’s modest gains are another day’s lossesand narrow trading ranges are the rule rather than the exception.The November contract sputtered lower Monday in an “uneventful”trading session to settle at $2.393. Estimated volume was anextremely light 23,667.

The November contract debuted as the prompt month yesterday byposting modest gains during a quiet trading session that saw nofresh news. November opened lower and quickly tested Monday’s $2.27low, but light commercial buying helped drive the market up 4.5cents to settle at 2.347 for the day. Estimated volume was a modest33,428.