Northeast Continues Down, Remainder Holds Fast
Cash market prices remained predominantly flat during Tuesday's
trading session, mimicking a stagnant Nymex futures screen and held
fast by decreasing demand nationwide. Aside from major Northeastern
markets, which almost doubled Monday's declines, cash continued
flat to a penny lower at most trading points.
Cash prices at Transco Zone 6 and Tetco M3 lost about a dime
from the day prior. "Moderating temperatures took a quick and fast
toll on cash prices out here," said a Northeast marketer. "We have
gone from snowstorm conditions over the weekend to 50-degree
weather in one day," he added.
A Midcontinent trader, who reported area prices flat in the
low-to-mid-$1.60s, said there was very little support for cash in
either direction during the day. "The market floundered, waiting
for Nymex to give some sort of a signal, but that didn't happen,"
the trader said. In addition, there certainly isn't much demand out
there, he added. "We [had] 73-degree weather in Tulsa [Tuesday]. I
also talked with one of my utility customers in Minnesota and he
reported 55 degrees over there." He said his customer had reduced
his loads by 30% since Sunday, and does not anticipate increasing
them for the rest of the month.
Absent the board doing something crazy, according to one source,
cash is going to stay at current levels, if not go down. "However,
If the board decides to go rocketing up, which is unlikely, who
knows where cash goes," he said. "In any case, I don't know that
[cash] is going to get much cheaper."
While Western and California border markets held Tuesday, one
marketer said he held back on buying gas in anticipation of lower
prices today. "There's a lot of gas out West, and there isn't much
demand at the border, which brought our loads down," he explained.
"While we saw prices flat out here [Tuesday], which was largely due
to balancing requirements, I think we'll start noticing softness
[today] and going into the weekend."
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