Natural Gas Intelligence
Northeast Prices Continue to Vault Higher; Futures Ease

Thursday, June 21, 2012

Overall physical prices rose 9 cents Wednesday, but the Northeast continued to grab the spotlight as pipeline maintenance, forecasts of hot temperatures and nuclear outages all combined to send some next-day gas prices higher by more than a dollar. Eastern points were mixed. At the close of futures trading July had eased 2.8 cents to $2.517 and August had slipped 1.9 cents to $2.555. July crude oil tumbled $2.23 to $81.80/bbl.

Industry consultant Bentek Energy said the surplus "is now decreasing quickly as a result of a warmer-than-average spring that has brought increased power burn demand." It said that according to its figures, "power burn demand is up almost 5 Bcf/d in 2012 compared to 2011."

"The Haynesville is hugely dominating. The Haynesville Shale is productive and producing dry natural gas. [It dwarfs the] "55 rigs drilling in the Permian, 38 in the Bakken and seven in the Texas Gulf Coast Eagle Ford," the producer said, citing a Bentek Energy report.

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