Windows

Low natural gas prices have stifled activity in the dry window of the Eagle Ford Shale in South Texas, but the play’s natural gas liquids (NGL) and crude windows “are hotbeds of activity,” according to veteran industry observer Rusty Braziel, now principal of RBN Energy.

As part of lackluster first quarter results released Wednesday, Hess Corp. said it doesn’t expect to meet production targets in the Bakken Shale this year, but warned analysts to be patient with the company while it shifts its focus from international basins toward its three liquids rich shale plays in the United States.

Low natural gas prices have stifled activity in the dry window of the Eagle Ford Shale in South Texas, but the play’s natural gas liquids (NGL) and crude windows “are hotbeds of activity,” according to veteran industry observer Rusty Braziel, now principal of RBN Energy.

Bullied by winter weather — both outside their windows and in the latest forecasts — futures traders were quick to react Wednesday morning as they propelled natural gas prices above the $3.00 mark for the first time since November. In dramatic fashion, the January contract not only gapped higher on the open, but also gapped above psychological support at $3.00. However, after posting its $3.02 opening trade, the market fell lower throughout the session as traders looked apprehensively to today’s release of fresh storage data. The prompt month settled with a slim, 1.6-cent advance at $2.911, more than a dime off its high for the session.

Bullied by hot weather — both outside their windows, as well as in the latest forecasts — natural gas futures traders pressured prices off recent lows Monday and deposited the prompt month back above the psychologically important $3.00 level. At the closing bell, September had received the biggest boost of any contract, gaining 5.6 cents to close at $3.027.

Boosted by soaring cash prices and cooler temps both outsidetraders’ windows and in the latest weather forecasts, natural gasfutures were higher Monday after gains registered in the Sundaynight Access trading session were validated by a gap higher open.The December contract was the largest beneficiary of the Sundayevening-Monday morning buying frenzy, finishing up 24.2 cents at$5.698. Meanwhile the back months lagged considerably, evidenced bythe 12-month strip, which only advanced 8.2 cents to $4.826.

Above-normal temperatures, both outside traders’ windows and intheir weather forecasts, continued to weigh on the futures marketthroughout trading Monday. The February contract gapped lower atthe open as moderate selling prompted the market down 6.4 cents toits $1.714 close. Estimated volume was heavy, with more than 93,000contracts changing hands.