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May 2012
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Archive for the Natural Gas Category

Natural Gas Inventory Rises -

Natural gas inventory exceeded analyst expectations and increased 61 billion cubic feet last week.  The Energy Department indicated that natural gas inventory levels are at 2.667 trillion cubic feet.  Inventory levels remain higher than the same time last year.

To read a related Businessweek article, please click here:

http://www.businessweek.com/ap/2012-05/D9UQLV900.htm

Jim Sutliff

Natural Gas Prices Fall -

Natural gas prices fell 2.6% in Friday trading to cap off a week of price volatility.  Natural Gas prices during the week showed gains of as much as 4.5% and declines as steep as 5%.  June natural gas settled at $2.279 per million British Thermal Units.  Last week, there were 606 natural gas drilling wells which was a drop of 7 from the previous week.  The number of oil rigs increased to 1,355 from 1,328.  According to the Energy Information Administration, natural gas output fell to 72.32 billion cubic feet per day.  Inventories are at 2.576 trillion cubic feet which is almost 50% more than last year at this time.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/BT-CO-20120504-714022.html

James Sutliff

Natural Gas Continues To Decline -

Natural gas inventories continued to rise and increased 57 bcf last week.  The inventory rise and the warmer weather are sending natural gas prices lower in trading.  Henry Hub natural gas delivery prices fell to $2.00 per million British Thermal Units.  That marks the lowest price point in 31 months.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/03/30/markets-natgas-spot-idUSL2E8EU5VC20120330

James Sutliff

Natural Gas Inventories Build -

Natural gas inventories rose 11 billion cubic feet to 2.380 trillion cubic feet.  The increase in natural gas inventories was the first of the year and was driven by warmer than normal winter weather.  The rise in inventories sent natural gas prices lower at most major markets.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/03/22/markets-natgas-spot-idUSL1E8EM87W20120322

Jim Sutliff

Natural Gas Inventory Declines -

The Energy Information Administration indicated that natural gas inventories declined by 166 billion cubic feet.  The decrease was greater than analysts had expected and more than the 102 billion cubic feet decline last year.  Prices remained low due to mild winter weather and high inventory levels.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/02/23/markets-natgas-spot-idUSL2E8DNDHW20120223

Jim Sutliff

Natural Gas Futures End Lower -

Natural gas continued to slide with March futures falling almost 2% to $2.431.  Mild winter weather forecasts lowered expectations of heating demand for the next week.  In addition, natural gas supplies have remained well above average levels.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970204795304577220950935275494.html

James Sutliff

Natural Gas Supplies Decline -

According to the Energy Information Administration, natural gas supplies fell 78 billion cubic feet last week.  The decline was less than the 84 to 88 billion cubic feet decrease that analysts had expected.  Current inventory levels are almost 33% higher than the five year moving average.

To read a related CBS Moneywatch article, please click here:

http://www.cbsnews.com/8301-505245_162-57373935/us-natural-gas-supplies-fell-last-week/

Jim Sutliff

Energy Department Lowers Marcellus Shale Estimate -

The U.S. Department of Energy lowered their estimate of natural gas reserves in the Marcellus Shale.  The previous estimate of 410 trillion cubic feet has been adjusted to 141 trillion cubic feet.  Energy Department estimates are based on reserves that can be recovered with the current technology.  The Marcellus Shale extends through several states which include New York, Pennsylvania, and Ohio.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-23/u-s-reduces-marcellus-shale-gas-reserve-estimate-by-66-on-revised-data.html

Jim Sutliff

Natural Gas Falls Over 6% -

Natural gas fell more than 6% in trading on Thursday and settled at $2.3220 per 1,000 cubic feet.  Natural gas supplies have steadily increased and warmer than normal weather is expected over the next few weeks.  Gasoline and crude oil fell slightly and heating oil rose 2.26 cents.

To read a related MSN Money article, please click here:

http://money.msn.com/business-news/article.aspx?feed=AP&date=20120119&id=14709809

James Sutliff

Natural Gas Edges Up -

Natural gas rose slightly at the end of the week and closed at $3.062.  Forecasts of colder weather countered inventory reports which had sent natural gas prices lower.  Colder weather is expected in the Northeast for January 16th through the 20th.    Warmer than normal winter weather has put pressure of natural gas and oil prices this season.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-06/natural-gas-rises-on-cold-weather-forecast-commodities-at-close.html

James Sutliff

GSCI Index Falls -

Commodities continued to drop and the Standard & Poor’s GSCI Index hit a 9 month low.  In afternoon trading, the GSCI Index fell to 594.12 which is the lowest level since early December 2009.  Metals were hit hard with silver, gold, copper, and nickel all falling.  Gold was trading below $1,700 an ounce and was down almost 5%.  Crude oil also declined and fell to $77.55 a barrel before rebounding to just under $80.  Global recessionary concerns are weighing on investors as well as the European debt crisis.   

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-09-23/commodities-poised-for-worst-week-in-4-months.html

Jim Sutliff

Commodities Rebound -

Stocks continued to decline at the end of the week but commodities started to rebound.  Growth projections for developing countries increased demand for raw materials.  Commodities advancing at the end of the trading week were silver, cooper, gold, and gasoline.  Gold finished the week at over $1,850 an ounce. 

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-08-19/commodities-led-by-oil-head-for-fourth-weekly-drop-gold-rises-to-record.html

Jim Sutliff

Natural Gas Inventory Level Rises -

Natural gas dropped 12 cents in trading after an Energy Department report indicated that supplies increased more than expected last week.  Analysts expected an increase of 90 to 94 billion cubic feet and actual inventories grew 105 billion cubic feet.  Inventories are slightly below the five year average of 2.05 trillion cubic feet.

To read a related Businessweek article, please click here:

http://www.businessweek.com/ap/financialnews/D9NF6JI02.htm

Jim Sutliff

Crude Oil Inventories Rise -

Crude oil inventories rose by 2.1 million barrels to 352.8 million barrels which is the highest level since last November.  Supplies of gasoline fell 5.3 million barrels and inventories of distillates were unchanged.  In addition, refinery utilization rates and demand for gasoline increased last week.

To read a related Seeking Alpha article, please click here:

http://seekingalpha.com/article/259802-crude-inventories-at-5-month-high

James Sutliff

Crude Oil To $200?

The Bloomberg Chart Of The Day looks at oil prices and outstanding $200 call options.  The article discusses the recent events in the middle east that are spiking interest in crude oil call options.  The number of $200 contracts are at the highest level since they first traded in July 2009.

To read the Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-03-07/saudi-arabia-s-day-of-rage-lures-record-bets-on-200-oil-chart-of-day.html

James Sutliff