Daily GPI / NGI All News Access

Weekend Prices Move Higher for a Change

Weekend Prices Move Higher for a Change

Defying the conventional wisdom that lower gas demand over a weekend usually causes softer prices, cash prices put on a show of strength Friday with nearly all points rising by a nickel or more. An increase of less than a penny in the Henry Hub futures contract provided little support for the cash market, so sources concluded it must have been the residual effect from Thursday's screen run-up of nearly a dime that helped push up cash quotes Friday.

Weather fundamentals remained lacking for the most part, but traders saw enough heat and humidity in Texas and Louisiana and enough cool weather in the Pacific Northwest and western Canada to generate a modest amount of air conditioning and heating load for gas.

A marketer agreed that Thursday's screen spike must have been responsible for Friday's cash firmness, but found it hard to understand "how the Merc could reverse itself like that after initially treating the AGA storage report as bearish."

Major processing plant outages starting today at Opal and Blanco should keep the Rockies and San Juan Basin markets strong this week, several traders said. One estimated the Opal work will curtail about 500 MMcf/d today and Tuesday, while the Blanco project will cut a net of over 700 MMcf/d initially and then lesser amounts later this week.

A Calgary source reported intra-Alberta numbers rising from the high C$2.60s into the low to mid C$2.70s as trading went on. But traders in markets as diverse as the Northeast and San Juan Basin instead saw a downtrend; the higher prices were early, according to the Northeast trader. San Juan saw a wide range and "really dropped at the end" into the $1.90s, a marketer said. Demand just dried up after the California utilities got done with their weekend purchases, he added.

©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.

Copyright ©2018 Natural Gas Intelligence - All Rights Reserved.
ISSN © 2577-9877 | ISSN © 1532-1231
Comments powered by Disqus