Able

As a Gulf Coast trader had expected, Tuesday’s rise of 13.7 cents in February futures was able to boost cash prices “a little bit” Wednesday — but just barely. The market-supporting frigid weather of recent weeks was becoming just a memory for many people; although lows around freezing or less remained in the forecasts for much of the East through the Midwest and Plains into the Rockies and most of Canada, they were considered a return to “seasonable” conditions for mid-January.

Despite some optimistic talk in early 2009, Capital Hill lawmakers were never able to bring energy and climate change legislation to a final vote, and the bill — or bills — may not make it to the finish line again this year.

Although a couple of sources had been dubious a day earlier about cold weather forecasts for the holiday weekend being able to rally the cash market, the projected jump in heating load proved sufficient to boost prices at most points Thursday. After sinking by triple-digit amounts in the previous two days, Northeast citygates led the rebound with gains of a dollar or more at most locations as regional lows were expected to fall into the 20s again after a gradual warming trend.

January natural gas futures were able to regain some of Monday’s 11.3-cent loss in Tuesday trading, which was largely devoid of meaningful direction. With little in the way of fresh news to motivate traders, attention turned to the more distant portions of the price curve where longer-term opportunities may lurk. At the close of trading January futures rose 4.6 cents to $5.715 and February added 6.0 cents to $5.712. February crude oil gained 68 cents to $74.40/bbl.

Traders on Wednesday appeared to be tempering their expectations of cold weather being able to prompt market gains as the January contract posted a decline for the third straight day. The prompt-month contract recorded a low of $4.511 in afternoon trading before closing the day at $4.530, down 23.2 cents.

With all of its previously disrupted assets in service and the expansion of its East Texas gathering system completed, DCP Midstream Partners was able to slash quarterly losses, reporting a net loss of $42.1 million (minus $1.41/share) in 2Q2009, compared with a net loss of $153.1 million (minus $5.67) in 2Q2008.

With all of its previously disrupted assets in service and the expansion of its East Texas gathering system completed, DCP Midstream Partners was able to slash quarterly losses, reporting a net loss of $42.1 million (minus $1.41/share) in 2Q2009, compared with a net loss of $153.1 million (minus $5.67) in 2Q2008.

A marketer’s estimate that Thursday’s increase of 19.5 cents by September futures likely would be able to lift cash prices by small amounts Friday proved to be too bullish. A few points were flat to slightly higher, but a large majority of locations continued to sink as forecasts of cooler-than-usual summer temperatures in many regions again depressed power generation demand for gas.

Considering forecasts of weekend cooling trends in the Midwest and Rockies, it was hardly surprising that Thursday’s 24.3-cent dive by August futures was able to induce losses at all points in the cash market Friday. Naturally, the typical weekend drop of industrial load also played a part.