Northern Boy
09-14-2009, 03:47 PM
Get ready for winter as the old man Greed stares down old man winter! who would have known that the boys speculating on this stuff from Government Sachs would be in on it I`m so shocked . Its all to obvious the derivatives are slowing up from China so lets get some easy money from the all too eager paying public . They artificially drive up the price on speculation not facts . Well the way i see it where I`m at they can`t by law shut the heat off in the winter where kids are involved bring on the Snow its a good insulating Blanket
Natural gas prices jump 12 percent
AP
posted: 18 MINUTES AGO
NEW YORK -Oil prices dipped below $69 a barrel Monday though a strong rally for natural gas extended into its third straight day.
Prices jumped more than 12 percent in value for each per 1,000 cubic feet of natural gas on the New York Mercantile Exchange to start the week.
Rapidly spiking prices led to some talk on Nymex that a very large player in the market believes that, at least in the short term, prices have fallen too far.
Analysts at Goldman Sachs said prices for natural gas may even triple over the winter, though most energy experts believe there is a far greater chance that prices will plunge again.
There are two big factors that support the latter view, which would mean extremely cheap heating bills for a lot of people over the next few months.
The first is that natural gas in storage is 17 percent greater than it was last year and it is even nearing the maximum storage capacity in some places. And the U.S Energy Information Administration said in its short-term energy outlook that it expects another 12 percent buildup through October.
At the same time most meteorologists predict a very mild winter for large parts of the country. With demand already way down from industrial utility customers, the U.S. has an enormous amount of unused natural gas.
Oil and natural gas have historically tracked one another as far as prices go, but this year has been a different story. On Monday crude prices fell again as natural gas rose.
Benchmark crude for October delivery fell 84 cents to $68.45 a barrel. On Friday, the contract tumbled $2.65 to settle at $69.29.
A lot of pressure has been placed on the dollar-based crude because the dollar has rebounded in recent days. Oil prices have fallen about $4 during the last two trading days. Still, prices have doubled from earlier this year during what may have been the depth of the recession.
A lot of experts believe that optimism is premature because crude in storage, like natural gas, remains at very high levels.
Signs of an improved economic outlook have fueled optimism for growing demand for crude around the world, but supplies remain at high levels.
"At some point hope has to become a reality or prices will have to adjust accordingly," said PFGBest analyst Phil Flynn.
At the pump, the average price for a gallon of regular gasoline fell a tenth of a cent to $2.572, according to auto club AAA, Wright Express and Oil Price Information Service. That's 7.3 cents more than a month ago, but $1.22 less than at this time last year.
Gasoline for October delivery on the Nymex fell 1.41 cents to $1.7457 a gallon.
Prices have most certainly peaked for most motorists this year, barring some disruption in the Gulf of Mexico.
"The 'driving season' is over ... and supplies are greater today than in May," analyst and trader Stephen Schork wrote in his morning report.
In other Nymex trading, heating oil for October delivery rose less than a penny to $1.7329 a gallon. Natural gas jumped 38 cents to $3.342 per 1,000 cubic feet.
In London, Brent crude fell 13 cents to $67.56 on the ICE Futures exchange.
—
Associated Press Writers Pablo Gorondi in Budapest, Hungary, Alex Kennedy in Singapore and Stephen Bernard in New York contributed to this report.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2009-09-14 11:24:54
http://news.aol.com/article/natural-gas-prices-jump-12-percent/659860
Natural gas prices jump 12 percent
AP
posted: 18 MINUTES AGO
NEW YORK -Oil prices dipped below $69 a barrel Monday though a strong rally for natural gas extended into its third straight day.
Prices jumped more than 12 percent in value for each per 1,000 cubic feet of natural gas on the New York Mercantile Exchange to start the week.
Rapidly spiking prices led to some talk on Nymex that a very large player in the market believes that, at least in the short term, prices have fallen too far.
Analysts at Goldman Sachs said prices for natural gas may even triple over the winter, though most energy experts believe there is a far greater chance that prices will plunge again.
There are two big factors that support the latter view, which would mean extremely cheap heating bills for a lot of people over the next few months.
The first is that natural gas in storage is 17 percent greater than it was last year and it is even nearing the maximum storage capacity in some places. And the U.S Energy Information Administration said in its short-term energy outlook that it expects another 12 percent buildup through October.
At the same time most meteorologists predict a very mild winter for large parts of the country. With demand already way down from industrial utility customers, the U.S. has an enormous amount of unused natural gas.
Oil and natural gas have historically tracked one another as far as prices go, but this year has been a different story. On Monday crude prices fell again as natural gas rose.
Benchmark crude for October delivery fell 84 cents to $68.45 a barrel. On Friday, the contract tumbled $2.65 to settle at $69.29.
A lot of pressure has been placed on the dollar-based crude because the dollar has rebounded in recent days. Oil prices have fallen about $4 during the last two trading days. Still, prices have doubled from earlier this year during what may have been the depth of the recession.
A lot of experts believe that optimism is premature because crude in storage, like natural gas, remains at very high levels.
Signs of an improved economic outlook have fueled optimism for growing demand for crude around the world, but supplies remain at high levels.
"At some point hope has to become a reality or prices will have to adjust accordingly," said PFGBest analyst Phil Flynn.
At the pump, the average price for a gallon of regular gasoline fell a tenth of a cent to $2.572, according to auto club AAA, Wright Express and Oil Price Information Service. That's 7.3 cents more than a month ago, but $1.22 less than at this time last year.
Gasoline for October delivery on the Nymex fell 1.41 cents to $1.7457 a gallon.
Prices have most certainly peaked for most motorists this year, barring some disruption in the Gulf of Mexico.
"The 'driving season' is over ... and supplies are greater today than in May," analyst and trader Stephen Schork wrote in his morning report.
In other Nymex trading, heating oil for October delivery rose less than a penny to $1.7329 a gallon. Natural gas jumped 38 cents to $3.342 per 1,000 cubic feet.
In London, Brent crude fell 13 cents to $67.56 on the ICE Futures exchange.
—
Associated Press Writers Pablo Gorondi in Budapest, Hungary, Alex Kennedy in Singapore and Stephen Bernard in New York contributed to this report.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2009-09-14 11:24:54
http://news.aol.com/article/natural-gas-prices-jump-12-percent/659860