Weekend Prices Maintain Bullish Trend
The drop in gas load that usually accompanies a weekend
reduction of business activity failed to dampen the cash market's
bullishness Friday. Though a few points (El Paso-Permian and
Trunkline-South Texas) eked out only penny upticks and CIG and Waha
were essentially flat, most markets achieved gains of 3-7 cents.
Influencing factors were unchanged from earlier in the week,
sources said: Western cold, Southern heat, a higher screen and
electric utilities using gas in peaking units while many nuclear
and coal plants are down for refueling or other maintenance.
The casualty toll in the Thursday explosion of TECO Energy's
1,270-megawatt coal-fired power plant near Tampa, FL (see Daily GPI, April 9) rose to two deaths and
50 injuries in later reports Friday. A prognosis for returning the
plant to service was unavailable from TECO by press deadline
Friday. However, a spokesman for Florida Power & Light said all of
the state's electric utilities besides TECO had adequate power
Electric generation load for gas remained strong in Florida,
however, and in the rest of the South also. A big aggregator
trading at 10 Louisiana points saw all of them averaging $2.01 or
more, topped off by a $2.08-12 range into Florida Gas
Transmission-Zone 2. The $1.98 low ends of its Louisiana ranges
occurred on ANR and Tennessee's 800 Leg.
Midcontinent numbers were strong in the $2 area, a marketer
said. Chicago citygates started with a $2.08 bid "before the bell
rang" and went straight up with the screen as soon as trading
opened, he said. The marketer thinks end-users must be expecting
higher prices later because normally they would be withdrawing the
cheap gas they have in storage, but instead are continuing to buy
in the spot market.
Cash has moved up almost every morning over the last two weeks
as a sort of affirmation of the run-ups that have been prevalent in
the prior evening's Access futures trading, a Houston marketer
said. He also pointed out that the last two Aprils have had
generally moderate temperatures in the South; "this time it's much
To a Western trader, it looked like everything "was going to
shoot up real high this [Friday] morning, but then things settled
down to small gains." The West was expected to remain on the cool
side over the weekend but to begin warming early this week.
Nymex's early-morning strength was the main reason for increases
to the US$1.90 area at Sumas and to the low C$2.50s for both
intra-Alberta and Westcoast Station 2, according to a Calgary
©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.