Small gains at most points Tuesday turned into small losses at most points Wednesday as still-hot weather in many areas lost its price-boosting impact with some cooler temperatures looming down the road for some regions.
All losses were in single digits ranging from 2-3 cents to nearly a dime. Transco’s Zone 6-New York pool, where highs are expected to be capped in the mid 80s Thursday, took the biggest price hit. A few scattered points were flat to a couple of pennies higher.
The cash market had slightly negative guidance from the previous day’s 3.3-cent slide by September futures, and will continue to do so after Nymex’s contract fell another 6.5 cents (see related story).
Forecasts of highs on either side of 100 continued for much of the South through the desert Southwest, but otherwise fairly moderate conditions will remain in effect from the Northeast through the Midwest into much of the Rockies.
The National Weather Service anticipates temperatures being well above normal in the Aug. 9-13 period from most of Texas through the Southeast to the South Atlantic coast.
Assuming Tropical Storm Emily survives passage over the mountainous terrain of western Hispaniola (Haiti and Dominican Republic) and eastern Cuba, the National Hurricane Center expects it to work its way northward along Florida’s east coast with no disruption to Gulf of Mexico production.
As further evidence of high power generation demand beyond the Electric Reliability Council of Texas’ ongoing plea for consumption between 3 p.m. and 7 p.m throughout this week, the Southwest Power Pool said it had set a new regional electricity demand record of 54,949 MW Tuesday, surpassing Monday’s peak of 54,534 MW. Before this week, the previous record of 53,146 MW was set on Aug. 11, 2010, SPP said.
Florida Gas Transmission warned market-area customers of a potential Overage Alert Day due to highs in the mid 90s being forecast for Florida.
IAF Advisors analyst Kyle Cooper said he anticipates a 37 Bcf storage injection being reported for the week ending July 29.
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