Weaker

Prices got weaker Wednesday as losses expanded into double digits across the board. The general lack of weather-based load continued to weigh on the cash market, and that was exacerbated by the 22.5-cent loss by June futures a day earlier.

May natural gas futures were unable to sustain Friday’s 13-cent advance and stumbled badly as weaker crude oil and equity markets set a negative tone to the day’s trading. Analysts see no reconciliation between plump production and recession-diminished demand for another two quarters and suggest things could get really grim if next winter is mild.

July natural gas futures slumped Friday as forecasts called for moderate temperatures to envelop eastern and Midwest energy markets. A weaker petroleum complex also tugged prices lower. At the end of the day July natural gas closed at $12.625, down 17.3 cents from Thursday and 6.8 cents lower than the previous week’s finish.

Following years of record commodity prices and profits, the oil and natural gas industry is now traveling a bumpy road. The U.S. economy is weaker, the public’s climate change fears are high, access to reserves is tighter, output is lower and the workforce is smaller and getting older. For a smoother ride, energy executives urged their peers last week to invest in technology, build on efficiency measures and begin partnering with stakeholders around the world.

Following years of record commodity prices and profits, the oil and natural gas industry is now traveling a bumpy road. The U.S. economy is weaker, climate change is on the agenda, access to reserves is tighter, output is lower and the workforce is smaller. For a smoother ride, energy executives Tuesday urged their peers to invest in technology, build on efficiency measures and begin partnering with stakeholders around the world.

Slightly warmer weather, falling demand and weaker futures prices on Tuesday prompted most cash points to fall Wednesday, with the largest drops of $1-4 in the Northeast. However, a number of Midcontinent points rose anywhere from a few cents to 15 cents as colder weather returned to the regional forecast and small increases were seen in a number of other regions.

Canaccord Adams lowered its price assumptions for Henry Hub gas and WTI crude “to be more in line with our current view of weaker market conditions that are shaping up for 2007,” wrote analyst Irene Haas in a Wednesday note.

Canaccord Adams lowered its price assumptions for Henry Hub gas and WTI crude “to be more in line with our current view of weaker market conditions that are shaping up for 2007,” wrote analyst Irene Haas in a Wednesday note.

Despite weaker gas prices this summer because of the gas storage surplus, Raymond James’ mid-2006 exploration and production (E&P) capital expenditure survey last week indicated North American producers’ total spending in 2006, which includes exploration and development (E&D), acquisitions and stock buybacks, will increase 10-15%.