The cash market began the week by posting small advances Mondayon top of what was considered abnormally strong Friday pricing fora lower-demand weekend. The new increases were small, though,rarely getting above 4 cents, and some points registered as flat.
Once again there’s “no weather anywhere,” said a Mid-Atlantictrader who figured he could discount temperatures as a marketfactor after not having to run his air conditioner all weekend.Other sources agreed that except for a bit of chill in the Rockiesand Pacific Northwest, weather continues to have little to noinfluence on the gas market. A mild screen uptick provided aboutthe only cue cash could follow, one trader said.
Midcontinent trading seemed to start later than usual, said amarketer who didn’t see much action before 9 a.m. But once thingsgot going, the trend was mostly higher as cash followed Nymex up,he said. Most Midcontinent pipes began around $2.16-17 and rose by2-3 cents as the session wore on, topped by ONG finishing at$2.20-21, the marketer said. He expects the Wednesday AGA storagereport to hold last week’s course in the vicinity of 70 Bcf ininjections.
Contrary to the Midcontinent marketer’s experience, a Calgarytrader said late prices were off by a nickel or more from earlierdeals at Sumas and Westcoast Station 2. Sumas gas traded early onin the low $2.00s due to a fair amount of power generation buying,he said, and PG&E Gas Transmission-Northwest’s continuingconstraint upstream of Stanfield was still lending support toSumas, Stanfield and Malin prices. However, his last Sumas purchasewas down to $1.98, about even with Friday’s level.
Perhaps it was just due to getting settled into the routineagain after trading for a week altered somewhat by NGI’sGasMart/Power ’99 trade fair, but sources started to use the terms”quiet” and “boring” again in describing Monday’s activity. Amarketer said he got the impression that a lot of people expectedsoftness Monday after weekend prices had displayed unusual strengthand that they were surprised by the moderate firming instead.
©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.
© 2022 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |