Technical indicators appear to support a positive outlook for natural gas prices at least in the short term, but cautious traders could decide to enter the market only when the price moves above key resistance levels, according to technical analysts.
Climbing for a fifth consecutive trading session on Monday, natural gas futures could still have more room to move higher, according to technical analysts. However, they warned that the road to a sustained rally could be rocky.
Natural gas analysts are issuing cautionary warnings to market bulls, still firmly in control and backed by substantial technical strength, as near-term softness is possible after futures crashed through $3.000/MMBtu resistance.
Newly formed Sabinal Energy LLC has received a $300 million equity commitment from Kayne Private Energy Income Fund LP to prowl for oil and natural gas properties primarily in the Rockies, Midcontinent and Texas.
May natural gas is set to open a penny higher Wednesday morning at $1.99 as overnight trading pushed toward a technical breakout and forecasters called for cooling, albeit moderate, next week. Overnight oil markets improved.
January natural gas is set to open 8 cents lower Tuesday morning at $3.93 as traders see weather and technical factors working to suppress any meaningful market upside. Overnight oil markets fell.
Mexico state-owned oil monopoly Petroleos Mexicanos (Pemex) has signed a five-year agreement with ExxonMobil Corp. to share technical and scientific information. The agreement renews a previous collaboration agreement between the two companies, said officials. Mexico PresidentEnrique Pena Nieto, who took office in December, recently told reporters that Pemex wouldn't be sold or privatized, but it would be modernized. Pemex, Mexico's largest company, provides nearly all of its profits to the federal government. Natural gas production in Mexico has risen slightly from a year ago, but it has fallen over the past four years, according to Pemex. In February, gas output was 6.475 Bcf/d, compared with 6.430 Bcf/d a year ago. However, 2012 gas output averaged an estimated 6.385 Bcf/d, versus 6.594 Bcf/d in 2011 and 7.020 Bcf/d in 2010. Mexico also is a net crude oil exporter, but production fell to less than 3 million bbl in 2011 from almost 4 million bbl in 2003-2004.
ExxonMobil Corp. and Russia's state-owned OAO Rosneft last week agreed to expand a 2011 strategic cooperation agreement for exploration and development, and Rosneft was offered an option to a big stake in the Point Thomson, AK, natural gas and condensate project.
Natural gas supplies from Nova Scotia are dwindling, but the province of New Brunswick could join the shale gas renaissance sweeping much of North America, provided its shales can be exploited without harming the environment, New Brunswick Energy and Mines Minister Craig Leonard said Wednesday.
The Pennsylvania Department of Environmental Protection (DEP) has finalized its technical guidance for single source air quality permitting for exploration, extraction and production activities from oil and natural gas operations.