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Mar 9 Energy News and Predictions:
Energy Market Insight -- Written by Alan Lammey, Tuesday, Mar 9, 2010 It’s like someone lit a rocket under gas rig activity, because it’s growing at about as fast a pace as I’ve ever seen it grow. This is causing even more bearish sentiment, because where there’s drilling, there’s supply in an already well-supplied market. * * * Working gas storage should see another seasonal draw this week when the Energy Information Administration makes its report Thursday for the week ended Mar. 5. Bentek Energy pipeline data suggests a net storage draw in the middle of a 110 Bcf to 120 Bcf range, while I'm looking for about a 119 Bcf draw in my forecast. Also inline, SunTrust analyst Cameron Horwitz is calling for a 115 Bcf draw, noting slightly lower heating demand for the week and a 0.3 Bcf/d up tick in LNG send-out. Last year, the EIA reported a 112 Bcf draw for the week. The five-year average draw is around 109 Bcf. * * * CME/Nymex April gas futures inched down 1.1¢ to close at $4.516/MMBtu. After opening at $4.571, prices initially rose to an intraday high of $4.603 during morning trading before reversing course. Volumes were incredibly thin throughout of the trading day, but sellers had the last word, pressuring April gas down to an intraday low of $4.512. US heating demand is fading fast. Forecasts show that temperatures will moderate through mid-March. According to Commodity Weather Group, the northern half of the US will trend slightly warmer in both the 6- to 10-day and 11- to 15-day periods. Technical indicators for April natural gas are mixed. On the downside, major support is seen between $4.512 and $4.458, while lower level support resides at $4.03 and $3.89. Conversely, key resistance is seen at $4.603, followed by $4.626 and $4.755. If the latter is violated, the next major resistance level is $4.894, followed by $4.931, $5.05 and $5.18. * * * CME/Nymex April crude came off 38¢ to close at $81.49/bbl. Oil futures regressed for the first time in three sessions in a quiet, range-bound day. Oil fell roughly 2%, bottoming out an intraday low of $80.16 after the euro eroded amid concern that the Greek financial crisis will potentially spark defaults on debts by other European countries. Prices also fell on anticipation that US oil stocks increased last week, which will be reflected in Wednesday’s weekly Department of Energy report. Technical indicators for April crude oil remain mixed. On the upside, key resistance is seen at today’s intraday high of $81.91, followed by Monday’s high of $82.41. If violated, look for a further upside test of $83.65, $84.15 and $87.50. On the downside, key support is seen at today’s intraday low of $80.16, followed $78.26, while $77.82, $77.05 and $76.32 become longer term major support. Expectations for this week's Department of Energy inventory reports are: crude oil, up 2.0 million barrels; motor gas, up 250,000 barrels; distillates, down 1.0 million barrels. * * * Spot prices were higher today reflecting early futures strength and good storage arbitrage opportunities. Cash prices at the Henry Hub gained 5¢ to average $4.52, while Transco Station 65 rose 1¢ to average $4.50. In the northern tier markets, Transco Zone 6 New York went up 7¢ to average $4.92, while the Chicago citygates advanced 5¢ to average $4.65. In the West, cash prices at Opal, Wyoming, rose 1¢ to average $4.30, while the SoCal Citygate advanced 11¢ to average $4.82 and the PG&E Citygate gained 6¢ to average $5.07. _____________________________________________________________________ ELECTRICITY, ELECTRICITY, ELECTRICITY SWITCH NOW to a lower electricity rate at StarTex Power, located at www.StarTexPower.com Please choose "Radio" as the referral!!! Own or Manage A Business? Please Call Me For Your Electricity Needs! You know what is really exciting? How about a really low electricity bill? You know, natural gas prices that sets your electricity rates are at near historic lows. Many regards, Alan "Petrodamus" Lammey
Today’s natural gas market can best be described as lifeless, as April gas futures traded within a range of less than 9¢. Growing rig counts were a primary focus among gas traders. Meanwhile, according to the Energy Information Administration’s monthly Short-Term Energy Outlook, nationwide gas output in 2010 will average 58.72 Bcf/day, down only slightly from last month’s production forecast of 58.73 billion. The report also raised its forecast for gas consumption by 0.7% this year. Judging from today's weakness, prices should fade into the $4.40s or lower in coming days.
Please choose "Radio" as the referral!!!
You know what is really exciting? How about a really low electricity bill? You know, natural gas prices that sets your electricity rates are at near historic lows. Look at the graph below:
If you're a business manager or owner (or if you know one), commercial electricity rates are super low at the moment. Please call me and I'll personally set your company up with the LOWEST available business electricity rates, as well as place your company into a position to save even more money IF rates drop lower in 2009! Call me today! Alan Lammey 281-658-0395
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