Dow Jones Commodities Service:
March 14, 2006
Natual Gas and Oil Report
DJ US GAS: Nymex Gains For Second Session On Short Covering
Natural gas futures on the New York Mercantile Exchange moved higher Tuesday in a second day of short covering. April natural gas futures settled 16 cents higher at $7.167 per million British thermal units. Futures have now rallied nearly 8% in the past two sessions on what most traders said was technically driven buying after futures failed to break lower on bearish news last week. "This was just a long-awaited short covering," said Guy Gleichmann, president of futures broker United Strategic Investors Group. "The shorts just ran out of patience. Nobody wanted to wait until the credits were over - they all wanted to leave the theater at once." But Gleichmann said that the bounce may well be over and he sees a re-testing of recent lows around $6.50/MMBtu relatively soon. He noted that the fear of a summer demand surge may be excessive and in any case is too far off to resonate at the moment. "You've got a good month and a half before the heat," he said.
FUTURES |
SETTLEMENT |
NET CHANGE |
Nymex Apr |
$7.167 |
+16.0 |
Nymex May |
$7.333 |
+13.9 |
Nymex Jun |
$7.480 |
+12.1 |
CASH HUB |
RANGE |
PREVIOUS DAY |
Henry Hub |
$7.08-$7.18 |
$6.66-$6.90 |
Transco 65 |
$7.11-$7.18 |
$6.71-$6.96 |
Tex East M3 |
$7.80-$8.13 |
$7.15-$7.50 |
Transco Z6 |
$7.97-$8.40 |
$7.25-$7.50 |
SoCal |
$6.08-$6.18 |
$5.96-$6.05 |
El Paso Perm |
$5.90-$6.01 |
$5.75-$5.88 |
El Paso SJ |
$5.85-$5.96 |
$5.68-$5.80 |
Waha |
$5.95-$6.20 |
$5.82-$5.95 |
Katy |
$6.83-$6.91 |
$6.41-$6.50 |
Source: Cash market prices from traders and the Intercontinental Exchange.
-By Spencer Jakab, Dow Jones Newswires; spencer.jakab@dowjones.com
(END) Dow Jones Newswires
FUTURES AND OPTIONS TRADING INVOLVE RISK OF LOSS AND MAY NOT BE SUITABLE FOR EVERYONE.
March 30,
2006
United Strategic Investors Group
Guy Gleichmann, President
1926 Hollywood Blvd Suite 311
Hollywood, Florida 33020
(800)
974 – 8744