Prices Tack On a Little Extra to Weekend Gains
The cash market began the week by posting small advances Monday
on top of what was considered abnormally strong Friday pricing for
a lower-demand weekend. The new increases were small, though,
rarely getting above 4 cents, and some points registered as flat.
Once again there's "no weather anywhere," said a Mid-Atlantic
trader who figured he could discount temperatures as a market
factor after not having to run his air conditioner all weekend.
Other sources agreed that except for a bit of chill in the Rockies
and Pacific Northwest, weather continues to have little to no
influence on the gas market. A mild screen uptick provided about
the only cue cash could follow, one trader said.
Midcontinent trading seemed to start later than usual, said a
marketer who didn't see much action before 9 a.m. But once things
got going, the trend was mostly higher as cash followed Nymex up,
he said. Most Midcontinent pipes began around $2.16-17 and rose by
2-3 cents as the session wore on, topped by ONG finishing at
$2.20-21, the marketer said. He expects the Wednesday AGA storage
report to hold last week's course in the vicinity of 70 Bcf in
Contrary to the Midcontinent marketer's experience, a Calgary
trader said late prices were off by a nickel or more from earlier
deals at Sumas and Westcoast Station 2. Sumas gas traded early on
in the low $2.00s due to a fair amount of power generation buying,
he said, and PG&E Gas Transmission-Northwest's continuing
constraint upstream of Stanfield was still lending support to
Sumas, Stanfield and Malin prices. However, his last Sumas purchase
was down to $1.98, about even with Friday's level.
Perhaps it was just due to getting settled into the routine
again after trading for a week altered somewhat by NGI's
GasMart/Power '99 trade fair, but sources started to use the terms
"quiet" and "boring" again in describing Monday's activity. A
marketer said he got the impression that a lot of people expected
softness Monday after weekend prices had displayed unusual strength
and that they were surprised by the moderate firming instead.
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.