The National Weather Service in New York City predicted an active weather pattern for the next several days. "[L]ow pressure over the Southeast states late this afternoon [Tuesday] will intensify and move up the coast tonight...passing over the area on Wednesday and then heading into eastern Canada Wednesday night. High pressure will then build in from Thursday through Saturday...and move off the New England coast on Sunday. A coastal front will develop on Sunday and remain into Monday. Low pressure will develop on the front and move along the coast on Tuesday."
In spite of warm temperatures, transportation in the area remained tight. According to Genscape, "AGT [Algonquin Gas Transmission] has restricted interruptible and 100% of secondary out-of-path nominations that exceed entitlements sourced upstream of its Stony Point Compressor Station for delivery downstream of Stony Point, [the] Cromwell Compressor Station for delivery to points east of Cromwell, and Southeast Compressor Station for delivery to points east of Southeast."
Deliveries to Algonquin Citygates soared $3.50 to $9.59, and at Iroquois Waddington next-day gas rose 44 cents to $4.65. Gas on Tennessee Zone 6 200 L vaulted $2.50 to $8.44.
On Dominion, gas for Wednesday fell 4 cents to $3.48, and deliveries to Transco Leidy added 7 cents to $3.38. On Tetco M-3 gas for Wednesday delivery jumped 24 cents to $4.12, and gas bound for New York City on Transco Zone 6 added 47 cents to $4.53.
Midwest marketers had to pay up to get clients' storage ready. "Looking forward, December is looking cold and we had to pay on Consumers what the daily index is coming in at, $3.95 and $3.96," said a Michigan buyer.
The buyer said his firm hadn't withdrawn any gas from storage for clients in November thinking "it could get worse."
Gas for Wednesday on Alliance fell 11 cents to $3.89, and at the Chicago Citygates gas was quoted at $3.95, down 12 cents. On Consumers, gas was seen at $3.92, down 6 cents, and on Michcon Wednesday packages came in at $3.90, down 3 cents. Gas at Dawn changed hands at $3.99, unchanged.
Weather bulls can look forward to some frosty temperatures longer term. In its Tuesday morning 11- to 15-day forecast, WSI Corp. of Andover, MA, predicted a massive infusion of colder than normal temperatures extending from Oregon to South Texas to New York state. "Temperatures have trended colder over the interior Northwest and Plains, yet warmer over the East and Southwest when compared to the previous forecast," it said.
"Confidence is considered above average standards as models show excellent large-scale agreement through the end of the period. Risk is to the warmer side over the East and CAISO [California], whereas cold risks continue to be locked in over the Northwest, Rockies and Plains under a highly anomalous arctic air mass."