Continuing cold weather near the East Coast and in Eastern Canada contrasted with milder forecasts for the western two-thirds of the nation to produce mixed price movement Tuesday. A modest majority of locations softened. The restoration of industrial demand following a holiday weekend appeared to have little market impact.

Most of the changes both up and down were small, but the Northeast once again displayed how much more volatile it is than other market areas with several big moves that included both a dollar-plus advance and a dollar-plus loss. Downturns ranged from 2-3 cents to nearly $1.45, but not counting the triple-digit plunge in Transco Zone 6’s New York pool, the next largest loss was about 95 cents.

Similarly, other points were flat to about $1.30 higher, but other than the spike by Line 200 in Tennessee’s Zone 5, the next largest gain was a little more than 57 cents.

Nymex traders provided neutral guidance to Wednesday’s cash market by keeping prompt-month futures close to flat for most of Tuesday before winding up with an increase of 0.4 cent (see related story).

Pipeline flow regulation activity has been busy recently (see Transportation Notes). Some restrictions came and went during the holiday weekend while most traders were on vacation, while some new ones appeared and other existing ones were canceled.

The frigid conditions in the Northeast are due to last at least another day, but the National Weather Service sees the below-normal areas receding late this week while above-normal temperatures begin to dominate most of the northern half of the U.S. The western half of the South is already becoming more springlike, while the Midwest and Rockies will be starting out much chillier but gradually see temperatures get milder during the week.

Henry Hub maintained a basis spread premium to CIG of a little less than 20 cents, about the same as where the two ended last week.

In a reversal of a recent declining trend, the Baker Hughes Rotary Rig Count found a rebound of seven drilling rigs to 809 engaged in gas-oriented activity during the week ending Dec. 29. All of the additions occurred onshore, with the Gulf of Mexico count unchanged at 21, Baker Hughes said. Its most recent tally is down 5% from a month ago and 12% lower than the year-earlier level.

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