Gains tended to be smaller than those on Friday, but they still occurred again at all points Monday. Although high temperatures are receding to less than 80 degrees in Canada and much of the northern U.S., they will still be reaching the low to high 90s area in the South and Midcontinent Tuesday and surpassing the century mark in parts of the desert Southwest.
A 10.7-cent advance by July futures Friday and the return of industrial load from its usual weekend hiatus also contributed to Monday’s cash market strength.
Price increases ranged from about a nickel to nearly a dollar; however, the big Florida citygate spike was something of an aberration. Florida Gas Transmission (FGT) extended an Overage Alert Day into its sixth day (see Transportation Notes), but other increases were capped at a little less than 30 cents.
As on the preceding Friday, the rest of Nymex’s energy futures complex was weak Monday, but the July natural gas contract again turned in a strong performance, closing up 11.9 cents (see related story).
Stormy weather will keep temperatures subdued in much of the Midwest through Tuesday, although The Weather Channel said the southern sections of Kansas and Missouri would be five to 15 degrees above average, with some parts of Kansas hitting the upper 90s. The Northeast, Canada and most of the West will also be on the moderate side through at least Tuesday.
The South is providing the bulk of air conditioning demand currently, with highs from around 90 to the 97 area predicted from the South Atlantic coast through Texas and Oklahoma. And the Southwest is getting an early start on its typical triple-digit summer readings, with Phoenix “cooling off” slightly to 107 Tuesday, according to Weather Central.
The Atlantic Basin was still bereft of tropical storm activity a week into the 2010 hurricane season.
Other than FGT’s Overage Alert Day, times are quiet on the interstate pipes as no other significant restrictions were in effect.
Henry Hub volumes traded on the IntercontinentalExchange online platform jumped from 1,128,000 MMBtu for the weekend to 1,333,800 MMBtu Monday.
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