Talk about your flat markets (please). Many points saw absolutely no change from the previous day on Thursday or were only 2-3 cents either higher or lower. Wednesday’s futures decline of 2 cents apparently had little impact on cash numbers, as did cool to moderately warm condition in most areas.

Only a drop of a little more than a dime in El Paso’s San Juan-Bondad pool broke the overall trend of changes in single digits. Most points were flat to about a nickel higher, while losses tended to range from 2-3 cents to about a nickel in nearly all cases.

The Energy Information Administration’s report of a 73 Bcf addition to storage during the week ending April 16 fell short of consensus expectations in the upper 70s Bcf, which was sufficient for Nymex traders to push May futures 17.3 cents higher (see related story).

The market may be seeing a slight boost in power generation load for air conditioning in the South as most locations there were expected to hit 80 degrees or slightly higher Friday. But conditions were predicted to remain mostly chilly to moderate in the Midwest and Northeast. Although warming slightly, the desert Southwest could expect generally cool conditions to continue a bit longer.

Yes, Southwest weather is a little “strange” at this time, with unusually cool conditions likely to continue for a while longer, said a regional utility buyer. He noted sub-normal temperatures in much of California, along with some heating load in the mountainous areas of Arizona. But with the Palo Verde nuclear facility at near-full capacity and plenty of coal-fired generation available, gas prices are finding a tough road to ride to higher levels at this point, he said.

The buyer said fuel-switching (from coal to gas) is pretty much stalled unless gas prices fall considerably lower than they are now.

A utility buyer in the South said gas throughput is currently slow, but may increase as temperatures are slowly rising .

He reported already dabbling in the May baseload market with purchases of 10 MMcf/d at TGT Zone 1 at index minus 13 cents, with the buyer able to supply an additional 10 MMcf/d at index flat at its discretion. A similar deal on Trunkline-East Louisiana gas called for 10 MMcf/d at index minus 14 cents, with a supplier option for another 10 MMcf/d at index flat. The sellers were willing to provide the initial index-based discounts in hopes of selling the extra gas at higher prices, the buyer said, and that suited the utility because it could use the additional supplies for storage injections if necessary.

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