The cash market advanced again at nearly all points Thursday as it continued to ride the coattails of prior-day futures strength and got an extra boost from forecasts of rising temperatures in the Northeast. However, except for spikes in the Rockies, Thursday’s gains were considerably smaller than those of Wednesday, signaling that this week’s rally may be starting to run out of steam.
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Sparse Upticks in West Contrary to Overall Declines
Instead of riding the coattails of prior-day spikes in energy futures higher, as some sources had expected, the cash market started paying more attention again to weak fundamentals Wednesday. The result was price declines ranging from about a nickel to nearly 40 cents in the East, with a couple of flat to barely lower points thrown into the mix.
Futures Retrace Following Thursday’s Rally
After rallying Thursday on the coattails of a strong crude futures push, August natural gas futures continued their symbiotic relationship with liquids on Friday, following crude lower on the day.
Energy Tax Breaks Sail Though Senate on Back of Corporate Tax Bill
The $14 billion, 10-year energy tax package rode through the Senate Tuesday on the coattails of a broader corporate tax bill (S. 1637), which passed 92 to 5. It marked the first victory for the energy bill this year.
Spot Prices Ride Nymex Coattails 10-20 Cents Higher
Spot prices for natural gas were up 10-20 cents Tuesday in response to higher Nymex futures prices and a little bit of heating demand in Northern market areas. Warmer temperatures in the desert Southwest and maintenance on El Paso contributed to price increases in that region, while a rupture on TransCanada’s Peace River mainline in remote northwestern Alberta forced the shut-in of about 200 MMcf/d.
Cash Climbs 10-20 Cents on Storm Impact, Futures’ Coattails
Pulled higher by the momentum in the futures market and some lingering effects of the 2.1 Bcf/d in temporary production curtailments in the Gulf of Mexico late last week because of formerly Tropical Storm Hanna, cash prices bounded 10-20 cents higher Monday and ended on a relatively strong note at most locations outside the Rockies.
Cash Rides Strong Coattails of Energy Futures, New Storm
Weather-related demand remains somewhat meager, but the cashmarket found more than enough support Monday from superchargedenergy futures contracts and Atlantic storm activity to realizegains of about a dime or greater at nearly every point.
Legislative Proposal Would Block CPUC Opening PX Competition
Riding the coattails of state budget legislation facing a June30 deadline, California lawmakers are making an end-run around thestate’s constitutionally quasi-independent energy regulatory panelwith an amendment to block regulators’ latest move to expandwholesale electricity competition in the state. It is a similarpattern to what the elected officials have done the past two yearsregarding natural gas industry issues.
Futures Ride Coattails of Remarkable Cash Strength
Fueled by what one veteran trader called one of the mostdramatic price moves in the history of the natural gas market,futures prices rallied Monday as the prompt January contractsettled up 12.3 cents to $2.101. But that daily change paled incomparison to the enormous advances seen in the cash market wheredaily gains registered more than a half-dollar for many pipes.Forecasts calling for cooler temperatures for most of the countryand undervalued cash prices were reasons for the market strength,sources agreed.
Cash Rides Coattails of Skyrocketing Screen
“Fundamentals are bearish, technicals are bullish, and today[Tuesday] the bulls beat the [socks off] of the bears.” Rather thandescribing a pro sports encounter between two Chicago teams, aHouston-based aggregator was summing up his view of the physicaland futures gas markets. Led by a soaring screen that dazzledobservers with its pyrotechnics (“this is crazy,” exclaimed onemarketer), cash prices were rising by a dime or more at nearly allpoints in the face of continuing widespread mild temperatures.