weather

Natural gas bulls were likely salivating last week as MDA EarthSat Energy Weather announced nothing but supportive price news for summer 2007. The Rockville, MD-based forecasting firm said it expects this summer to be “warmer than normal,” adding that it also expects an “active” Atlantic hurricane season with the Gulf of Mexico and its land borders under increased threat.

Natural gas bulls were likely salivating this week as MDA EarthSat Energy Weather announced nothing but supportive price news for summer 2007. The Rockville, MD-based forecasting firm said it expects this summer to be “warmer than normal,” adding that it also expects an “active” Atlantic hurricane season with the Gulf of Mexico and its land borders under increased threat.

Citing a forecast of 90-degree weather in central Florida, Florida Gas Transmission issued an Overage Alert Day Tuesday for market-area customers. The tolerance for negative daily imbalances was set at 25%. FGT said it would not interrupt previously scheduled market-area ITS-1 service for Tuesday’s gas day.

Extreme volatility in weather or an active hurricane season could alter their fundamentally bullish outlook, but Raymond James & Associates analysts said last week that tightening supply and demand fundamentals should yield a more bullish summer-ending storage scenario at around 3,100 Bcf, with higher sustainable prices through this year and into 2008.

Citing forecasts of 90-degree weather in Florida and falling linepack, Florida Gas Transmission issued an Overage Alert Day for market-area customers Thursday. The tolerance for negative daily imbalances was set at 25%. FGT said it would not interrupt previously scheduled ITS-1 service in the market area for Thursday’s gas day.

Extreme volatility in weather or an active hurricane season could alter their fundamentally bullish outlook, but Raymond James & Associates analysts said Monday that tightening supply and demand fundamentals should yield a more bullish summer-ending storage scenario at around 3,100 Bcf, with higher sustainable prices through this year and into 2008.

Concerns about extreme weather conditions and rising prices in the crude oil market will keep upward pressure on the Henry Hub natural gas spot price this year and next, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for April and Summer Fuels Outlook. It also anticipates higher gas consumption and production levels this year.

Concerns about extreme weather conditions and rising prices in the crude oil market will keep upward pressure on the Henry Hub natural gas spot price this year and next, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for April and Summer Fuels Outlook. It also anticipates higher gas consumption and production levels this year.

Despite price weakness at the end of 2006, cold weather in early 2007 depleted gas storage levels more than expected, and Schlumberger Ltd. CEO Andrew Gould told analysts last week that the company believes “fundamentals are clearly in place for reinforced natural gas activity later this year.”