Upward

Following strong bullish moves on Wednesday and Thursday, July natural gas futures on Friday kept the upward pressure on, but relaxed a bit range-wise, trading within a slim 11.5-cent corridor.

Greater upward pressure is expected on natural gas prices this summer due to projected warmer-than-normal weather in portions of the United States, a potentially active hurricane season, increased gas demand and flat production, the Natural Gas Supply Association (NGSA) said last Thursday. The association said the market impact of high gas storage levels will be far outmatched by the numerous other bullish factors influencing prices.

Greater upward pressure is expected on natural gas prices this summer due to projected warmer-than-normal weather in portions of the United States, a potentially active hurricane season, increased gas demand and flat production, the Natural Gas Supply Association (NGSA) said Thursday. The association said the market impact of high gas storage levels will be far outmatched by the numerous other bullish factors influencing prices.

With still almost two months in which water levels could be reversed upward before the summer in the Pacific Northwest, power industry observers are predicting more reliance on natural gas-fired electric generation and higher overall wholesale power costs in the region, while California and parts of the Southwest prepare to head off any peak demand problems this summer, mostly due to infrastructure bottlenecks rather than a shortage of generation capacity.

With still almost two months in which water levels could be reversed upward before the summer in the Pacific Northwest, power industry observers are predicting more reliance on natural gas-fired electric generation and higher overall wholesale power costs in the region, while California and parts of the Southwest prepare to head off any peak demand problems this summer, mostly due to infrastructure bottlenecks rather than a shortage of generation capacity.

While revising its forecast for natural gas prices in 2005 upward, the R.W. Beck consulting firm still is keeping the target well under $6 at the Henry Hub despite average 2004 prices of $6.13/MMBtu, 30 cents above its forecast. The group moved its annual estimate for 2005 from $5.49 to $5.68/MMBtu.

While revising its forecast for natural gas prices in 2005 upward, the R.W. Beck consulting firm still is keeping the target well under $6 at the Henry Hub despite average 2004 prices of $6.13/MMBtu, 30 cents above its forecast. The group moved its annual estimate for 2005 from $5.49 to $5.68/MMBtu.

R.W. Beck’s energy market consultants on Wednesday revised their 2004 natural gas price at Henry Hub upward 50 cents, or 10%, to $5.86/MMBtu because, they said, world events have driven up oil prices and kept an already tight gas market in over drive.

R.W. Beck’s energy market consultants on Wednesday revised their 2004 natural gas price at Henry Hub upward 50 cents, or 10%, to $5.86/MMBtu because, they said, world events have driven up oil prices and kept an already tight gas market in over drive.