Causes

Though somewhat unremarkable in that it featured a 151 Bcf withdrawal that was well within market expectations (see related story), the weekly storage report released Thursday by the Energy Information Administration (EIA) drew attention from industry analysts and data crunchers alike because it was a calendar anomaly — it was the 53rd weekly storage report for 2004.

Though somewhat unremarkable in that it featured a 151 Bcf withdrawal that was within market expectations, the weekly storage report released last Thursday by the Energy Information Administration (EIA) drew attention from industry analysts and data crunchers alike because it was a calendar anomaly — it was the 53rd weekly storage report for 2004.

Prices soared at virtually all points Monday after a frigid mass of air from Canada had invaded much of the U.S. and sent temperatures plunging, even in the previously mild South. Some Northeast citygates led the price climb with gains around a dollar or more, and most other points rose by at least half a dollar.

Prices soared at virtually all points Monday after a frigid mass of air from Canada had invaded much of the U.S. and sent temperatures plunging, even in the previously mild South. Some Northeast citygates led the price climb with gains around a dollar or more, and most other points rose by at least half a dollar.

The Gulf of Mexico production industry in the vicinity of Hurricane Ivan’s path took a significant beating, the Minerals Management Service (MMS) reported on Friday. News of production platform damage, platforms and rigs missing and presumed sunk, and pipelines leaking and on fire sent the gas futures market skyward Friday, a day after many apparently had written off the storm.

Trying to meet analysts expectations for quarterly performance has gotten so far out of hand that it’s causing energy executives to make unsound business decisions, said the former head of Denver-based Tom Brown Inc.

Although many have questioned the causes of the recent price spike beyond $7/MMBtu, the federal government’s long-term natural gas forecast released Tuesday makes it clear that the gas market has become, and will remain, tighter and more prone to higher prices than previously expected.

Although many have questioned the causes of the recent price spike beyond $7/MMBtu, the federal government’s long-term natural gas forecast released Tuesday makes it clear that the gas market has become, and will remain, tighter and more prone to higher prices than previously expected.

Moderate softness permeated the cash market Wednesday as the screen turned in a negative performance and weather-related load remained stagnant in the East while fading a bit in the West. Small declines of about a nickel or less (with occasional flatness) were recorded at most points, but a cooldown from recent hot weather generated losses of 10-25 cents or so in much of the West (although that region also had a few points slightly to either side of flat).