Energy Prices Stuck in Neutral

The higher-than-average natural gas inventories have been priced into the market, he says, and probably won't send natural gas prices lower than they already are. He also said that the recent selloff in crude oil must be respected. A near-term $55 crude oil price wouldn't be very surprising, according to Palmisano.

Larry Levin, technical analyst at Secrets of Traders in Chicago, says that the key bottom support level for natural gas is $6.190 per million BTU. Levin predicts that this level will likely be reached sometime next week.

"If the $6.190 level is punctured, a lot of sellers will be drawn into the natural gas market," said Levin.

Among equities, the majority of stocks in the energy complex ended down on the day. Baker Hughes(BHI Quote) finished 9.4% lower to $65.19 after releasing fourth-quarter earnings that fell short of estimates.

Baker Hughes was downgraded by Credit Suisse from outperform to neutral on the news.

Turning to exchange-traded funds that track the sector, the Oil Services HOLDRs(OIH Quote) fell 1.9% to $136.05. The iPath Goldman Sachs Crude Oil(OIL Quote) rose a penny to close at $35.57.