"Futures prices through October were up 20¢ or more as hedge funds went on a calculated buying spree, forcing traders out of short positions ahead of rapidly increasing prices, which perpetuated the rally," said analysts at Enerfax Daily. The June natural gas contract jumped by 21.7¢ to close at $7.95/MMbtu on the New York Mercantile Exchange. On the
"By all accounts the nation is flush with natural gas and inventories are expected to build quickly over the next several weeks. Above-average temperatures will stretch across the entire middle of the
Olivier Jakob, managing director of Petromatrix GMBH, Zug, Switzerland, said, "Natural gas was leading the energy complex but is now facing strong resistance levels."
Meanwhile, crude futures prices for both North Sea Brent and benchmark West Texas Intermediate continued to decline but "managed to hold technical support levels with the combined help of a confused hostage taking in
Rebel gunmen took—but reportedly later released—eight foreign hostages aboard a floating production, storage, and offloading vessel in the Okono-Okpoho oil field operated by Eni SPA about 60 miles off Nigeria. In a separate incident, 11 foreigners and a Nigerian were kidnapped from a Daewoo Engineering & Construction Co. site near
"Fresh conflict in
Jakob said, "With Nigerian hostage taking turning into farce, suspension of Belgian strikes, [and] lesser Arab-Persian geopolitical risk, the incentive for weekend short-covering is only mild."
Energy prices
The June contract for benchmark
In
The average price for the Organization of Petroleum Exporting Countries dropped 50¢ to $63.11/bbl on May3.
PIN/OGJ.COM
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