Weekend Softness Mild Due to Heat Expectations
Cash prices proved remarkably resistant Friday to the softness
that usually accompanies lowered demand for a weekend period. The
Gulf Coast and Northeast citygates were essentially flat, while
most of the small declines were concentrated in the West and
Midcontinent. Sources attributed the relatively firm pricing to
modest support from a slightly higher futures screen, along with
trader anticipation of a return to hotter weather more
characteristic of June than last week's below-normal thermometer
readings throughout much of the East.
The anticipation mentioned above was already showing up in some
deals done Friday. A marketer whose weekend El Paso-Permian quotes
averaged $2.13 said he also traded three Monday-only packages for
nearly a dime higher with people who were expecting even higher
western temperatures early this week.
A large aggregator said it seemed like there were five sellers
for every one buyer Friday, even though his Appalachian and
Northeast citygate quotes were flat to down only a penny. "You hate
to see such a lopsided ratio, but that's how it was," he added.
There was hardly any demand in Transco Zone 6 (non-New York City),
he said; "it's just too cool up there."
When swing gas retreats to near first-of-month index levels as
it is at many eastern points, the aggregator continued, it creates
a big incentive for increasing storage injections. He didn't think
he would have had much weekend market at all in the Northeast if
not for storage buyers.
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