NEW YORK (Dow Jones)--Natural-gas futures settled modestly higher Friday, with gains attributed to fuel switching by utilities. April-delivery natural gas on the New York Mercantile Exchange settled 2.1 cents higher, at $2.484/mmBtu after a steep 5.8% loss a day earlier on news that the supply glut is larger than analysts had believed. Prices shed 21.1 cents, or 7.8%, in the week. "The only thing that's keeping this market from being really down is the fuel switching" from pricier coal to cheap gas, said Kyle Cooper, managing partner at IAF Energy Advisors in Houston. Nuclear power outages also are lending some support to gas demand, also, he said. Gas storage levels are at record highs at 45% above five-year averages, amid weak demand and persistent above-normal temperatures, and will continue to pressure prices, he said.
Saturday, March 3, 2012
Natural Gas Inches Higher
NEW YORK (Dow Jones)--Natural-gas futures settled modestly higher Friday, with gains attributed to fuel switching by utilities. April-delivery natural gas on the New York Mercantile Exchange settled 2.1 cents higher, at $2.484/mmBtu after a steep 5.8% loss a day earlier on news that the supply glut is larger than analysts had believed. Prices shed 21.1 cents, or 7.8%, in the week. "The only thing that's keeping this market from being really down is the fuel switching" from pricier coal to cheap gas, said Kyle Cooper, managing partner at IAF Energy Advisors in Houston. Nuclear power outages also are lending some support to gas demand, also, he said. Gas storage levels are at record highs at 45% above five-year averages, amid weak demand and persistent above-normal temperatures, and will continue to pressure prices, he said.
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