Digit

EQT Corp. on Wednesday reported double-digit initial production (IP) results for two of its newest natural gas wells in the Pennsylvania portion of the Marcellus Shale.

The cash market was showing growing signs of weakness as the mostly single-digit declines that had slightly dominated weekend numbers Friday got larger in nearly all cases Monday. Forecasts of peak temperatures ranging from around 90 to either side of 100 stretched from the South Atlantic area through Oklahoma and Texas into much of the desert Southwest, but moderate to cool conditions continue to reign in the rest of the U.S. and Canada.

Prices were up by double-digit amounts at nearly all points Monday, getting strength from warming temperatures returning to several areas, a futures gain of 13.4 cents on the preceding Friday and news of a tropical system off the West African coast that had a good chance of becoming the Atlantic’s first named storm (Alex) of the season.

Getting a big boost from the jump of 21.7 cents by May futures going into the holiday weekend, spot prices rose by double-digit amounts at all points Monday. Increases in cooling load across the South and some residual heating demand in parts of the West, as well as the return of industrial load following a long holiday weekend, also contributed to the cash bullishness.

Getting a big boost from the jump of 21.7 cents by May futures going into the holiday weekend, spot prices rose by double-digit amounts at all points Monday. Increases in cooling load across the South and some residual heating demand in parts of the West, as well as the return of industrial load following a long holiday weekend, also contributed to the cash bullishness.

February natural gas futures made double-digit gains Friday as traders see a fundamental shift in the supply-demand balance in the long term and factor in another spate of bone-chilling cold. At the close February futures rose 20.4 cents to $5.819 and March added 18.2 cents to $5.750. March crude oil continued its slide lower, dropping $1.54 to $74.54/bbl.

Triple-digit plunges continued at Northeast citygates Wednesday, and unlike a day earlier they were joined by declines spreading across the board. Several sections of the market were due to get a bit more reprieve Thursday from frigid conditions previously, although lows in the teens and 20s were still in the forecast from the Rockies through the Midwest, and sub-zero readings were expected in Alberta and parts of the Upper Plains.

One Western Canada point managed to be the exception to overall double-digit price declines continuing Friday. Forecasts of unseasonably moderate late-November temperatures in many areas again were the primary drag on spot quotes, abetted by the usual drop of industrial load during a weekend. As a producer had predicted, Thursday’s rally of 8.8 cents by December futures was unable to induce a similar response in the cash market.

Already weak cash prices got much weaker Friday, as Thursday’s across-the-board double-digit losses not only continued but grew much bigger to boot. The existing general lack of weather-based demand was exacerbated Friday by the previous day’s 37.5-cent dive by November futures and the decline of industrial load associated with a weekend market.