'Little More Heat,' & Screen Lead Cash Quotes Higher
Nearly every trading point continued to build Wednesday on the
slight degree of bullishness established on Tuesday. The majority
of increases were moderate, within the range of 2-4 cents. There
was "just a little more heat" to raise cooling load a notch higher,
said a Midcontinent source, and the futures screen literally put in
its 2 cents worth with a rise of a little over that amount.
The weakest market was in the Rockies, where several pipes were
flat to a penny or two lower. One marketer said he did his first
deals into Kern River at Opal for just over $2, "and no more than
five minutes later a big seller emerged to push prices down." He
reported three subsequent Kern River-Opal purchases at $1.96-98.
The Rockies in general was coming off as trading progressed, he
The tendency was in the opposite direction for a Northeast
utility buyer. It seems some degree of supply tightness has
occurred late in almost every daily trading session recently, he
said. His early Texas Eastern M-3 and Transco Zone 6-NYC purchases
around $2.40 were followed by others at $2.44-45.
The Waha/Katy spread got about a penny wider than it was earlier
this week, but at 4 cents it still was far from satisfactory to one
marketer. He was trading Waha at $2.17-18 and Katy at $2.21-22.
The AGA's Wednesday afternoon report of 85 Bcf was on the low
side "but not by much," according to a Midcontinent marketer. "It
[the report] was neutral as far as I'm concerned."
Intra-Alberta pricing barely seemed to notice that as much as
800-900 MMcf/d was coming back into the market now that NOVA has
finished its maintenance curtailment on the Western Alberta
Extension. A trader quoting intra-Alberta at C$2.73-74 Wednesday,
barely a penny or two down, thought a lot of the returning gas was
being absorbed by storage injections.
Convergence was working pretty well for the above intra-Alberta
trader. He reported doing both July and July-October baseload deals
in the mid C$2.70s. But most people are still "real skittish" about
doing any July deals prior to the Nymex settlement, reported a
Northeast source who was getting Transco Zone 6-NYC basis offers of
plus 19-19.5. A marketer said most of the Midcontinent talk he was
hearing continues to center around index-flat deals.
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