Volatile

Natural gas producers, consumers and regulators in North America and Europe will wrestle with new supply uncertainty, fuel alternatives, and volatile markets and prices for at least the next three years, according to Cambridge Energy Research Associates (CERA) researchers.

Even with the continuing volatile wholesale energy prices, Wall Street rating agencies have come full circle in the past five years, focusing on broad regulation trends and conservative price criteria in assessing energy holding companies and their utility subsidiaries, according to Standard & Poor’s Ratings Services’ San Francisco-based energy industry analyst Swami Venkataraman.

In another day of volatile cash trading prompted by some colder temperatures, gas prices moved up 20-60 cents at most locations, although a few were outside that range. The western and eastern market areas included some of the smallest increases, with New York and PG&E Citygate, for example, rising only about 15 cents. Some of the larger gains were seen in the Gulf Coast and Midcontinent areas.

In another day of volatile cash trading prompted by some colder temperatures, gas prices moved up 20-60 cents at most locations, although a few were outside that range. The western and eastern market areas included some of the smallest increases, with New York and PG&E Citygate, for example, rising only about 15 cents. Some of the larger gains were seen in the Gulf Coast and Midcontinent areas.

Volatile oil and natural gas prices, along with a growing concern that interest rates are moving up, appeared to send U.S. stocks down across the board for the third straight day Monday, with some prices at their lowest level in a year. Only a few energy companies — integrateds and utilities — posted any gains, while the producers took the biggest hit.

Prices managed to eke out more mostly small gains Thursday in decidedly non-volatile trading as weather support continued to turn slightly more bullish. A few scattered points turned in essentially flat performances. Nearly all of the gains were in single digits, but they ranged to a little more than 20 cents in the Rockies, where some of the coldest U.S. temperatures — and even a bit of snow — currently reside.

With natural gas production down and prices remaining at persistently high and volatile levels, coal may be on its way back into favor for U.S. power generation, according to a report by Standard & Poor’s (S&P).

The cash market broke out of a lengthy pattern of volatile price movement for the most part Wednesday. Except for plunges of 60 cents to nearly two dollars in the Northeast, the rest of the market tended to range from slightly softer to 20 cents higher. A majority of the gains were less than a dime.

In another in a string of volatile trading sessions, natural gas futures climbed higher early in the session Tuesday in sympathy with crude oil and in anticipation of a potentially bullish storage report Thursday, only to be dumped lower in the afternoon as traders realize that winter is starting to release its stranglehold on the market.