Updated

Despite calls for profit-taking, natural gas futures continued higher Wednesday as buyers pressed prices to new 19-month highs. For a second session in a row, the buying was reportedly dominated by fund traders who, after being flat for more than a month began to accumulate long positions. The buying was heaviest in the January and February contracts, which gained 7.3 cents and 8.1 cents to close at $4.709 and $4.675, respectively. March lagged slightly with a 5.5-cent gain to $4.539. Meanwhile the interest in the back months was considerably less, leaving the summer 2003 strip with a paltry 1.3-cent gain to average $4.235.

The staff of the Federal Energy Regulatory Commission has updated the agency’s guidelines for reporting the results of investigations of cultural resources (i.e. historic properties), which are carried out for new pipeline projects. For details about the guideline changes, go to the Commission’s home page at http://www.ferc.fed.us.

Amid updated weather forecasts confirming the warming trend that is set to engulf the entire Eastern half of the nation this week, natural gas futures dove lower Tuesday, as traders returned from the holiday weekend and promptly liquidated long positions initiated early last week. February took the selling squarely on the chin, gapping lower at the open bell, and not once looking back as it came just one tick away from notching a new contract low at $2.094. It closed with an even 13-cent decline at $2.106.

With all eyes focused on updated weather forecasts and fresh storage data, natural gas traders took a “wait and see” approach Tuesday as light short-covering nudged the prompt contract modestly higher. December finished the session at $2.798, up 6.5 cents for the session and near the top of yesterday’s narrow trading band. A healthy estimated volume of 75,656 was surprising, considering the lack of appreciable price movement.

Devon Energy Corp. issued an updated version of its hedging transactions, including previous hedged positions and its most recent transactions, going through the rest of 2001 and into 2002.

In a new report, the Minerals Management Service has updated its Gulf of Mexico forecast for daily oil and gas production, predicting that between now and 2005, gas production will be 11.10 Bcf/d to 16.54 Bcf/d and oil production will be 1.526 MMbbl/d to 1.967 MMbbl/d. The greatest potential for development, said the federal agency, is in deepwater of 1,000 feet or more.

In a new report, the Minerals Management Service has updated its Gulf of Mexico forecast for daily oil and gas production, predicting that between now and 2005, gas production will be 11.10 Bcf/d to 16.54 Bcf/d and oil production will be 1.526 MMbbl/d to 1.967 MMbbl/d. The greatest potential for development, said the federal agency, is in deepwater of 1,000 feet or more.

updated May, 30, 2001

Success in deepwater exploration in the Gulf of Mexico improvedthe outlook for both oil and natural gas resources, according to anupdated report by the Minerals Management Service. The 2000 MMSresource assessment now indicates that there is a 65% increase inconventional recoverable oil reserves and a 35% increase in naturalgas on the outer continental shelf.