Daily GPI / NGI All News Access

West Softens While East Gains Slightly

West Softens While East Gains Slightly

It was a tale of two cash markets on Friday, as the majority of price points east of the Rockies registered gains of 1 to 7 cents, while prices to the West dropped because of the typical weekend decrease in California power demand exacerbated by a weekend constraint announced on PG&E's system. El Paso (non-Bondad) was one of the pipes to fall the farthest, finishing in the mid $2.20s.

A high inventory OFO caused PG&E citygate to trade about flat to the Southern California Border on Friday, marking the second time in a week PG&E has put an OFO on its system which has seriously affected the basis between the two points. Yet unlike the one that constrained Wednesday's flow (See Daily GPI, August 4), Friday's OFO is "a pretty usual thing for them to do," one western trader said. He added there were also rumblings of a Southern California Border OFO planned for the weekend as well, but nothing had been substantiated by press time Friday.

Stanfield was the premium pipe in the Rockies, one trader said, as it followed the Nymex higher. It traded into the low $2.30s, while CIG and Northwestern stayed flat and Kern River fell into the low $2.20s.

Aeco prices rose again Friday, finishing the week in the low $C/JG 3.20s. The rise is attributed to a rush in Alberta to put gas in storage, as well as increasing ties to the rising Nymex. One trader said sellers in the Rockies are looking to Aeco for price direction and are unwilling to sell gas much below Alberta levels. "Aeco [strength] is the only thing keeping the Rockies from collapsing," the trader said.

On the other side of the country, Gulf Coast prices rose slightly. "The Gulf was really strong from the start today," one trader said, quoting early Tetco West Louisiana prices in the low to mid $2.60s. "Late in the day, prices came back a bit and there seemed to be a lot of gas out there, but for the most part Friday was pretty strong." He said summer heat in the Midcontinent and in the Gulf was a main reason behind the uptick.

Midcontinent prices were also up slightly as the Chicago citygate finished in the low $2.70s and Northern Natural Demarcation finished in the mid $2.50s.

Adding flames to the bulls' fire is the National Weather Service's (NWS) new six- to 10-day weather forecast. While the Northeast will experience normal temperatures, the NWS also forecasts most of the Midwest will be engulfed by above-normal temperatures. It also predicts that a small area in Northern Texas, including Houston, and Oklahoma will experience much above-normal temperatures.

©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