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NEW YORK (Dow Jones)--Natural gas futures pulled back Monday after touching seven-week highs, as traders weighed whether the market's recent rally has accounted for the boost to heating needs expected to accompany colder-than-normal temperatures this week.
Natural gas for April delivery recently traded 1.1 cents, or 0.2% lower, at $4.392 a million British thermal units on the New York Mercantile Exchange. The contract, which expires at Tuesday's settlement, earlier rose as high as $4.475/MMBtu.
The benchmark futures contract has ended higher in five of the last seven sessions, and some traders were reluctant to bet on further gains with milder weather on the horizon and strong North American production expected to continue.
Futures rose by 5.6% last week, supported by forecasts for the early spring cold across much of the upper Midwest and Northeast through the beginning of April. Meteorologists still expect colder-than-normal temperatures across the eastern U.S. this week, with milder weather elsewhere.
Traders had largely written off remaining seasonal heating needs, but "the magnitude and duration of the early spring cold spell apparently became too pronounced to ignore," said Jim Ritterbusch, president of energy advisory firm Ritterbusch and Associates, in a client note.
Analysts say the market remains under pressure from the view that North American supply will outpace demand with end of winter's heating needs.
The number of rigs drilling for natural gas in the U.S. last week rose for the first time in four weeks, Baker Hughes Inc. (BHI) said Friday. There were 880 rigs drilling for natural gas during, the oil-field services provider said, up by five from the previous week.
Physical gas for next-day delivery at the benchmark Henry Hub in Louisiana traded at $4.35/MMBtu early Monday, according to IntercontinentalExchange, up 22 cents from Friday's average. Gas for Tuesday delivery at Transcontinental Zone 6 in New York traded at $5.44/MMBtu, down 26 cents from Friday.
Meanwhile, India's upstream oil and gas regulator said Monday that it was on track to launch its first auction for shale gas exploration rights by the end of the year.
Several countries have shown keen interest in trying to replicate the success of U.S. shale gas boom, which has reversed the country's trajectory from becoming a likely major gas importer to a potential exporter in the coming years.
Exploratory shale drilling projects are already underway in Poland and Argentina. Algeria is set to drill preliminary wells this year, and China's energy regulator is considering options for shale development.
Natural gas for April delivery recently traded 1.1 cents, or 0.2% lower, at $4.392 a million British thermal units on the New York Mercantile Exchange. The contract, which expires at Tuesday's settlement, earlier rose as high as $4.475/MMBtu.
The benchmark futures contract has ended higher in five of the last seven sessions, and some traders were reluctant to bet on further gains with milder weather on the horizon and strong North American production expected to continue.
Futures rose by 5.6% last week, supported by forecasts for the early spring cold across much of the upper Midwest and Northeast through the beginning of April. Meteorologists still expect colder-than-normal temperatures across the eastern U.S. this week, with milder weather elsewhere.
Traders had largely written off remaining seasonal heating needs, but "the magnitude and duration of the early spring cold spell apparently became too pronounced to ignore," said Jim Ritterbusch, president of energy advisory firm Ritterbusch and Associates, in a client note.
Analysts say the market remains under pressure from the view that North American supply will outpace demand with end of winter's heating needs.
The number of rigs drilling for natural gas in the U.S. last week rose for the first time in four weeks, Baker Hughes Inc. (BHI) said Friday. There were 880 rigs drilling for natural gas during, the oil-field services provider said, up by five from the previous week.
Physical gas for next-day delivery at the benchmark Henry Hub in Louisiana traded at $4.35/MMBtu early Monday, according to IntercontinentalExchange, up 22 cents from Friday's average. Gas for Tuesday delivery at Transcontinental Zone 6 in New York traded at $5.44/MMBtu, down 26 cents from Friday.
Meanwhile, India's upstream oil and gas regulator said Monday that it was on track to launch its first auction for shale gas exploration rights by the end of the year.
Several countries have shown keen interest in trying to replicate the success of U.S. shale gas boom, which has reversed the country's trajectory from becoming a likely major gas importer to a potential exporter in the coming years.
Exploratory shale drilling projects are already underway in Poland and Argentina. Algeria is set to drill preliminary wells this year, and China's energy regulator is considering options for shale development.
