As a producer had predicted, Monday’s rebound in the cash market was fleeting. Although some parts of the Midwest were about to see temperatures retreat again after a brief warm-up, the moderate nature of the general weather outlook combined with prior-day futures weakness to take nearly all of the cash market lower Tuesday.

Flat numbers at a couple of Midcontinent/Midwest points were the exceptions to losses ranging from a little less than a nickel to slightly more than a quarter. El Paso’s San Juan-Bondad pool in the Southwest was well ahead of the rest of the market in recording the biggest drop.

Screen guidance for cash quotes, which had been negative due to Monday’s 9.5-cent decline by May futures, turned positive again for Wednesday — but only by a smidgen. As it often has done recently, the prompt-month contract made another daily U-turn and rose 3.1 cents to $3.975 (see related story).

Despite a lengthy constraint on deliveries into the Nicor system being lifted Tuesday (see Transportation Notes), along with the Chicago-area high due to fall from 63 Tuesday to the mid 50s Wednesday, citygate prices fell nearly a dime.

Not all of the Midwest will see colder weather Wednesday, and cool to moderate temperatures will be fairly stable in the Northeast. Meanwhile, a modest warming trend is under way in the South that will be returning most sections into the 70s.

Stormy conditions moving eastward from the West Coast, along with some high mountain snow moving into Idaho, Nevada, and Utah Tuesday night are keeping the West cool, The Weather Channel said, but not especially cold for the most part. Even most Western Canada locations will not be getting below the mid to upper 40s Tuesday, while the Phoenix area that had been living up to its hot spot reputation with highs approaching 90 through Tuesday can’t expect to get much above 70 Wednesday.

Spotty movement in high and low temperatures in the Upper Midwest has had an area marketer turning the furnace off and on again recently, she said. As a Chicago-area source had reported Monday, she said there had been recent ground frost in Michigan, although it was gone by Tuesday. Area weather has been a little colder earlier this week but not enough to cause a significant boost in spot gas buying for clients, she added.

Strategic Energy & Economic Research’s Ron Denhardt projects that a 78 Bcf storage injection will be reported for the week ending April 16. That would be just barely higher than the 77 Bcf reported for the comparable period last year. SunTrust Robinson Humphrey analyst Cameron Horwitz said he looks for a smaller build of 73 Bcf, which he attributes to a 24% increase in heating degree days, which boosted space heating demand. Additionally, gas-fired power generation increased nearly 1 Bcf/d week over week, Horwitz said.

Stephen Smith of Stephen Smith Energy Associates expects a repeat of the year-ago injection, saying his latest estimate of 77 Bcf is up from an earlier outlook for 73 Bcf.

©Copyright 2010Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.