The swing market had a lot going for it Monday, and it showed in sharply higher prices at all points. The biggest factor, of course, was more summer-like hot weather returning in several market areas, particularly through the midsection of the United States. In addition, a tropical wave in the Caribbean drew some attention, the screen went up nearly 16 cents, and there was the normal rebound in industrial/commercial load following a weekend.

Gains were in double digits in all markets. Eastern points saw increases that were mostly between 15 and 30 cents. A few Rockies pipes rose by less than 30 cents, but most price advances in the Rockies and California exceeded 30 cents.

A Houston-based buyer said he was surprised by the “screen blowout” Monday, chalking most of it up to hotter weather but adding that some of it likely was based on tropical wave “hype.” Once the heat fundamentals die down again, he is anticipating a huge drop in prices.

That’s not likely very soon, though. The National Weather Service said that by Sunday the heat in the eastern three-fourths of the nation will have receded to normal temperatures from Texas through the Southeast, but will remain above normal everywhere else from the Rockies eastward.

The heat is greatest from the Midwest down through the Louisiana/Texas Gulf Coast, and is manifesting itself to a slightly lesser degree in the Rockies and Southeast. The Northeast and West Coast were still experiencing fairly moderate temperatures Monday, but the mercury is due to be rising in the Northeast as the week progresses.

A tropical wave, described as strong by one forecasting service, was moving westward into the central Caribbean Sea and was given a chance for slow development. However, a couple of marketers concurred that although the wave generated a buzz among gas traders during the morning, its price-hype value was minimal because many “tended to write it off pretty quickly,” one said. Another marketer said his company was hearing some talk about the wave among trading partners, “but we dismissed it as fairly inconsequential to the market.”

The strength in September futures was making itself felt in higher bidweek numbers. An industrial end-user said he was glad he did not wait until after the weekend to make his purchase. He paid in the low $3.20s Friday for a baseload Houston Ship Channel package, but was hearing prices in the high $3.30s Monday afternoon.

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