US GAS: Futures End Slightly Higher With Oil, Equities
July 20 2009 - 4:05PM
Dow Jones News
Natural gas futures finished slightly higher Monday, supported
by positive economic data and rising crude oil prices.
Natural gas for August delivery on the New York Mercantile
Exchange settled 2 cents, or 0.55%, higher at $3.689 a million
British thermal units after reaching a high of $3.774/MMBu in
combined electronic and floor trade earlier in the day.
Some better-than-expected company earnings, a rise in a measure
of economic activity and news that commercial lender CIT Group Inc.
(CIT) struck a deal to avoid bankruptcy helped boost energy
commodities Monday. Traders have been looking for signs of economic
recovery that could point to a rebound in oil and gas demand.
Nymex light, sweet crude oil for August delivery settled 42
cents, or 0.66%, higher at $63.98. Natural gas can be used as a
substitute for petroleum products in some power plants and heating
systems.
"This market has been waiting for more earnings to see where
things stand" in terms of the economic outlook, said Pax Saunders,
an analyst with Houston-based energy advisory firm Gelber &
Associates.
Toy maker Hasbro Inc. (HAS) reported Monday that its
second-quarter profit rose 5%, beating expectations. Oilfield
services company Halliburton Co.'s (HAL) earnings fell, but the
results surpassed analysts' forecasts.
The Conference Board, a non-profit group for business
executives, said Monday that its index of leading economic
indicators rose 0.7% in June.
But mixed weather forecasts and abundant supplies continued to
place some downward pressure on gas prices. Total gas in storage as
of July 10 was 2.886 trillion cubic feet, 18.7% above the five-year
average and 25.6% above last year's level.
Moderate temperatures in the major gas-consuming regions over
the next two weeks were expected to limit cooling demand for
natural gas. Unusually cool weather will continue in parts of the
Great Lakes and Northeast into early August, said Jim Rouiller, a
meteorologist with private forecaster Planalytics Inc., in a note
to clients Tuesday.
"High temperatures will range from the low 70s to the low 80s
across the Northeast and Great Lakes while upper 70s to mid 80s
prevail across the Midwest and Mid Atlantic," Rouiller wrote.
-By Christine Buurma, Dow Jones Newswires; 212-416-2143;
christine.buurma@dowjones.com