Unlike much of last month, when Western markets persistentlydisplayed weakness while their Eastern counterparts were rising, itis the West flexing a bit of price muscle this week. Rockies pipeswere back up into the $1.30s Tuesday after several had made a briefsojourn into sub-$1.30 territory Friday and Monday. The reason forthe rebound mystified one trader. “It’s not that cold in theregion, so go figure,” he said, adding maybe it was just a resultof the normal “tug of war” between gas buyers and sellers.
Although Malin quotes were flat in the mid $1.50s, the SouthernCalifornia border was tacking on a few more cents. And though Wahaquotes barely nudged higher, El Paso-Permian got a boost worthabout a nickel from the end of Permian pool and Amarillo Mainlinemaintenance by NGPL, which allowed Southwest gas greater access toMidcontinent/Midwest markets, one trader pointed out.
The rising electric generation demand in Texas also had HoustonShip Channel trading at a small premium to Henry Hub again.Otherwise the Gulf Coast and Midcontinent was a mix of flat toslightly higher or lower. A Gulf producer was disappointed thatprices remain below index, but sources reported an uptrend atnearly all points based on late supply shortness. Many pipesfinished trading at their highs for the day, they said.
A marketer who did an intra-Alberta winter deal at C$2.55,nearly a dollar over current pricing, said he expects theprovincial market to stay strong for the upcoming winter season dueto Northern Border adding extra capacity effective Nov. 1.
A source expecting an AGA storage injections report in thevicinity of 100 Bcf said he expects little change in cash pricesfor the rest of the week.
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