Appeared

Although there was a false start Tuesday as Southern California Gas appeared to be ending a high-linepack OFO but waited until the afternoon to extend it another day, the utility will allow the OFO to expire Thursday.

Southern California Gas had appeared set to allow a high-linepack OFO that was initiated on Tuesday of last week to expire Wednesday. However, Tuesday afternoon it said the OFO would continue for at least one more day. The utility also recovered 150 MMcf/d of injection capacity Tuesday at its Aliso Canyon storage facility after force majeure repairs to a K-25 gas generator that had begun March 19 were completed.

Southern California Gas had appeared set to allow a high-linepack OFO that was initiated on Tuesday of last week to expire Wednesday. However, Tuesday afternoon it said the OFO would continue for at least one more day. The utility also recovered 150 MMcf/d of injection capacity Tuesday at its Aliso Canyon storage facility after force majeure repairs to a K-25 gas generator that had begun March 19 were completed.

The general weather moderation in most areas had proven puzzling Tuesday when most points rose a few cents, but it appeared that logical behavior had returned to the market Wednesday as prices fell across the board. The previous day’s futures decline of 1.1 cent, while minuscule, was an added slightly bearish factor in the cash market.

The general weather moderation in most areas had proven puzzling Tuesday when most points rose a few cents, but it appeared that logical behavior had returned to the market Wednesday as prices fell across the board. The previous day’s futures decline of 1.1 cent, while minuscule, was an added slightly bearish factor in the cash market.

Cash prices appeared to disregard fresh winter storms bringing heavy snow to the Midwest through the Northeast and already hard-hit Mid-Atlantic, and lows around freezing or less spreading into much of the South (with more of the same due Wednesday in each instance), in falling at virtually all points Tuesday. To at least one source, the previous day’s 11.4-cent decline by March futures apparently had more influence on the cash market than weather forecasts.

Cash prices appeared to disregard fresh winter storms bringing heavy snow to the Midwest through the Northeast and already hard-hit Mid-Atlantic, and lows around freezing or less spreading into much of the South (with more of the same due Wednesday in each instance), in falling at virtually all points Tuesday. To at least one source, the previous day’s 11.4-cent decline by March futures apparently had more influence on the cash market than weather forecasts.

Domestic natural gas production appeared to be “resilient” through October in the Energy Information Administration (EIA) monthly estimates, but energy analysts are split about whether those numbers are accurate, and whether an uptick in gas drilling will lead to a bigger supply surge in the coming months.

Domestic natural gas production appeared to be “resilient” through October in the Energy Information Administration (EIA) monthly estimates, but energy analysts are split about whether those numbers are accurate, and whether an uptick in gas drilling will lead to a bigger supply surge in the coming months.