Volatile

Assumptions for pricing of volatile natural gas liquids (NGL) have been changed, but this should not affect the credit ratings of NGL companies, according to a report released Friday by Standard & Poor’s Ratings Services (S&P). Generally, there is a 20-25% discount relative to average spot market prices.

Natural gas futures remained an uncharacteristic beacon of stability and suffered only a modest setback as other markets cascaded lower in volatile trading. At the close September natural gas had retreated 0.6 cent to $3.935 and October gave up just 0.5 cent to $3.957. November through June 2012 posted modest gains. By contrast the Dow Jones Industrial Average fell 635 points to 10,810 and September crude oil tumbled $5.57 to $81.31/bbl. Gold rose $70 to $1,722/oz, a record, and the yield on 10-year treasuries zoomed 20 basis points to 2.37%, the highest one-day move since May 2009.

If natural gas evolves over time into a global market, it is not likely to parallel the oil market with volatile high prices enabled by cartels and inflexible demand, since neither of those factors are likely to develop in the natural gas industry, according to one of the authors of a recent Massachusetts Institute of Technology (MIT) study (see NGI, June 13).

If natural gas evolves over time into a global market, it is not likely to parallel the oil market with volatile high prices enabled by cartels and inflexible demand, since neither of those factors are likely to develop in the natural gas industry, according to one of the authors of a recent Massachusetts Institute of Technology (MIT) study (see Daily GPI, June 13).

April natural gas managed a small gain Tuesday in volatile trading. Petroleum markets, however, continued to plummet as concerns mounted over the deepening crisis in Japan and a substantial hit to the world’s third largest economy. Natural gas prices managed to rise as traders noted the relative appeal of gas compared to deteriorating equity and other petroleum markets. At the close April natural gas had risen 2.7 cents to $3.941 and May closed 3.6 cents higher at $4.012. April crude oil plunged $4.01 to $97.18/bbl.

An early report from an ongoing Fort Worth air quality study has been corrected to show that volatile organic compounds (VOC) detected at one of the monitored sites are much lower than stated more than two weeks ago.

Robust gas production and storage numbers, coupled with low prices, create a “volatile and tricky” gas market, analyst says. read more

Questar Corp. “returned to its roots” in 2Q2010 as an integrated natural gas company after spinning off its volatile exploration and production (E&P) unit in May.

Questar Corp. “returned to its roots” in 2Q2010 as an integrated natural gas company after spinning off its volatile exploration and production (E&P) unit in May.