Lower Cash Quotes Take Cue From Tuesday Screen
As sources had expected, the prolonged decline of the June
futures contract throughout Tuesday's trading made its influence
felt in softer cash prices Wednesday. But cash losses were
decidedly modest, with nearly all points registering drops of only
2-4 cents. Futures offered only a tiny downtick of less than a
penny as further guidance Wednesday.
The repetition of "following the screen" may be getting tiresome
to many, one trader told Daily GPI, "but that's all we've had to
rationalize cash price movement for some time now." Weather remains
a non-factor as people enjoy a comfortably mild winter/summer
transition in virtually every region, he added.
The AGA report of 79 Bcf in storage injections last week jibed
with the expectations of many people, a marketer said, so it should
be considered neutral. But another trader, while acknowledging that
79 Bcf overall was right in line with what he expected, said he was
"personally bearish" about Midcontinent storage facilities being
62% full this early in the injection season. That doesn't leave
much flexibility for putting gas back into the ground, he said.
The San Juan Basin and Rockies markets will lose some price
support today, a couple of sources noted. Plant maintenance at the
Blanco and Opal Hubs is scheduled to be completed sometime today,
putting significant chunks of gas that had been shut in by the work
back on the market for Friday's gas day.
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