Price changes continued to be mixed for a second straight day Tuesday, but slight downturns remained slightly dominant. A small retreat of high temperatures coming Wednesday in parts of the South, along with mild forecasts for the Northeast, Midwest/Midcontinent and Rockies, were abetted by the previous day’s decline of about a nickel by September futures in sending a small majority of cash points lower.
Most points saw losses of 2-3 cents to about a nickel. The rest were flat to nearly a dime higher. The Florida citygate was again a market anomaly in plunging about 60 cents after Florida Gas Transmission ended an Overage Alert Day (see Transportation Notes).
Futures will again have slightly negative guidance for Wednesday’s cash market after falling another 2.7 cents (see related story).
Hurricane Danielle was in existence for a while but had regressed to tropical storm status again Tuesday afternoon. It never appeared to be any threat to Gulf of Mexico production as it was projected to steer toward Bermuda and remain well off the East Coast. The National Hurricane Center was also monitoring a low-pressure area about 150 miles south-southwest of the Cape Verde Islands, which it said had a 90% chance of becoming a tropical cyclone during the succeeding 48 hours.
While the East has been baking for most of August, more moderate conditions were setting in there early this week and being replaced by hotter temperatures along the West Coast. AccuWeather.com said a 90-degree reading at midday Tuesday in Los Angeles actually had a “RealFeel” effect of 100. Generally, late-August air conditioning load is less than normal.
A marketer said Upper Midwest weather was “cooler and drier right now” but should get quite a bit warmer for the weekend. Her company was applauding softer numbers in futures and most of the cash market, she said.
Nothing is happening yet in bidweek trading, she said.
Credit Suisse analyst Teri Viswanath expects a 41 Bcf storage injection to be reported for the week ending Aug. 20. Stephen Smith of Stephen Smith Energy Associates looks for a smaller build of 35 Bcf.
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