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February 2012
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Archive for the Natural Gas Category

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

Crude Oil Ends Lower -

 Crude oil reversed an upward trend in the final hours of trading on Thursday.  Crude oil had topped the $100 mark but ended up lower on the day finishing down almost $2 dollars.  News relating to a Saudi Arabian aid package helped to ease concerns for the region.  In addition, the energy inventory report indicated another weekly increase in supplies.  The oil market remains well-supplied with over 4 million barrels a day of OPEC spare capacity.

To read a related MarketWatch article, please click here:

http://www.marketwatch.com/story/crude-oil-ends-down-after-last-minute-reversal-2011-02-24?dist=afterbell

Jim Sutliff

Oil And Gasoline Supplies Rise -

Oil and Gasoline supplies rose last week and that sent prices lower in trading.  Oil prices are under pressure from rising inventories and increased output from OPEC.  Supplies of oil rose 1.9 million barrels last week to 345.1 million barrels.  Gasoline supplies rose 4.7 million barrels to 240.9 million barrels.

To read a related Yahoo! article, please click here:

http://finance.yahoo.com/news/Oil-prices-fall-as-supplies-apf-2431049096.html?x=0

Jim Sutliff

CFTC Proposes Trading Regulations -

The Commodity Futures Trading Commission has proposed new position limits to curb speculation.  The goal is to help prevent spikes in fuel and agricultural commodities.  If approved the plan would cover 28 different commodities.  The proposal is expected to face opposition from market participants as well as some commissioners.  The trading limits may not solve price volatility concerns and could have the effect of lowering liquidity. 

To read a related Financial Times article, please click here:

http://www.ft.com/cms/s/0/d13ced4e-1f46-11e0-8c1c-00144feab49a.html?ftcamp=rss#axzz1AxgQwnHR

Jim Sutliff

Natural Gas Bounces Back -

Natural gas bounced back a little and settled up 8.2 cents for the trading day.  Natural gas is near a 13 month low and that helped to spark interest that it may be oversold.  Weather forecasts for cooler temps in late October also fueled speculation that natural gas could climb in the next few weeks.  Large supplies and easy production increases will work against natural gas prices in the near term.

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

http://online.wsj.com/article/BT-CO-20101019-714565.html

James Sutliff

Market Data -

The next two weeks of economic data could lead to significant movement in the markets.  The GDP consensus will be released on Thursday and personal income statistics and manufacturing numbers will be released on Friday.  The Dow Jones started the week off with an almost 50 point drop.

To visit the Wall Street Journal Market Data, please click here:

http://online.wsj.com/mdc/public/page/2_3063-economicCalendar.html?mod=mdc_h_cmgrel

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

http://online.wsj.com/article/SB10001424052748704654004575517503898068436.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

Jim Sutliff