Digits

Next-day Electric Reliability Council of Texas (ERCOT) power prices dug deep into triple digits Wednesday in the wake of a massive winter storm.

Most locations recorded price increases — a majority of them in double digits — Monday as frigid conditions were forecast in most of Canada and the U.S. Some low-linepack issues and wellhead freezeoffs contributed to firmness in the West, and the return of industrial load from a longer-than-usual holiday weekend was also a bullish factor. But the previous Wednesday’s 0.3-cent gain by expiring December futures was considered insignificant.

It would seem that a day with forecast lows in single digits and the teens in many parts of Western Canada and the northern half of the U.S., accompanied by mercury levels due to bottom out around freezing in northerly reaches of the South, should be sufficient to cause rising spot gas prices. But it wasn’t so Wednesday.

Although not as strong as on the day before when gains across the board were nearly all in double digits, the cash market realized minor advances at a large majority of points Thursday. A small prior-day uptick of 2.8 cents by October futures provided a small amount of support, and there is evidence that recently heavy storage buying may be helping to keep cash quotes afloat.

Exploration and production (E&P) spending in the United States is still on track to jump by double digits from a year ago, tempered by less spending in the Gulf of Mexico (GOM) in the last half of the year because of the deepwater drilling moratorium, two energy analysts said separately last week.

Exploration and production (E&P) spending in the United States is still on track to jump by double digits from a year ago, tempered by less spending in the Gulf of Mexico (GOM) in the last half of the year, said Barclays Capital Wednesday.

Low temperatures sinking into the teens, single digits and even below zero Thursday in areas from the Northeast through the Midcontinent/Midwest, Upper Plains, Canada and parts of the Rockies failed to faze either the cash or futures markets Wednesday. Softness remained the order of the day. Physical prices fell at all but three points as conditions were due to stay relatively moderate across the southern tier of states and in much of the western U.S. outside the Rockies.

Low temperatures sinking into the teens, single digits and even below zero Thursday in areas from the Northeast through the Midcontinent/Midwest, Upper Plains, Canada and parts of the Rockies failed to faze either the cash or futures markets Wednesday. Softness remained the order of the day. Physical prices fell at all but three points as conditions were due to stay relatively moderate across the southern tier of states and in much of the western U.S. outside the Rockies.

A modest majority of points recorded price increases in triple digits Monday as frigid weather continued spreading into Canada and most of the northern half of the U.S. All of the cash market racked up big gains, getting extra support from the 39.7-cent pre-Thanksgiving spike by January futures.