Watchers

Market conditions and technology are on target for U.S. natural gas to compete in world markets, and industry watchers are placing their bets on which natural gas export proposals will actually be built and whether the first liquefied natural gas (LNG) exports will leave U.S. shores by 2015 or 2016.

Switching from coal- to gas-fired power generation has been more modest than many market watchers believe due to a variety of factors that distort the picture; however, in the years ahead, gas will continue to gain share in the power generation market as more gas-fired plants are built, according to an analysis by FBR Capital Markets.

Switching from coal- to gas-fired power generation has been more modest than many market watchers believe due to a variety of factors that distort the picture; however, in the years ahead, gas will continue to gain share in the power generation market as more gas-fired plants are built, according to an analysis by FBR Capital Markets.

It appeared that market watchers were engaged in a round of “buy the rumor, sell the fact” following Thursday’s news from the Energy Information Administration (EIA) that 164 Bcf was withdrawn from natural gas storage for the week ending Dec. 10. Immediately following the report, front-month futures values plummeted toward $4.

Trading within a 10-cent range in a quiet Friday session, September natural gas futures on Friday eked out a 3.2-cent gain to close at $4.328, but some market watchers were quick to note that the market remains hopelessly range-bound. The week’s close was 13.9 cents below the previous week’s finish.

Natural gas futures dropped a second consecutive day on Wednesday but some veteran market watchers remained unimpressed, noting that they believe the near-term bottom to the market at $3.810 was recorded last Thursday.

Natural gas futures dropped a second consecutive day on Wednesday but some veteran market watchers remained unimpressed, noting that they believe the near-term bottom to the market at $3.810 was recorded last Thursday.

Front-month natural gas futures recorded a two-month low on Friday and threatened to take out what some market watchers deem as significant support down at the $5 price level. The March contract reached a low of $5.008 before closing Friday’s regular session at $5.044, down 12.8 cents from Thursday’s finish.

Front-month natural gas futures recorded a two-month low on Friday and threatened to take out what some market watchers deem as significant support down at the $5 price level. The March contract reached a low of $5.008 before closing Friday’s regular session at $5.044, down 12.8 cents from Thursday’s finish.