The cash market finally shook off the price weakness that haddominated it since late last week as most points ranged from flatto up about a nickel Tuesday, with some in the Rockies/San JuanBasin achieving dime-plus gains. However, with traders still unableto perceive see any significant weather load on the horizon and thescreen falling more than a quarter, the cash firmness was expectedto be short-lived.
Dominated
Articles from Dominated
Most Points Only Mildly Softer; West Makes Gains
Much of the price hemorrhaging that dominated the latter half oflast week’s cash market was well on its way to being stanchedMonday. Eastern points were only a tad softer, with few falling anymore than about a nickel, and most western points realized small tomoderate gains.
Storm Pressures Futures Through Key Technical Level
Buoyed by storm concerns and another overnight session dominatedby buyers, natural gas futures jumped higher yesterday to post yetanother all-time record high. After opening right on top ofprevious resistance at $5.10, the October contract raced to its$5.223 high during the first 90 minutes of trading, triggering buystops on the way up. October finished just off its high at $5.195,up 14 cents for the session.
Cash Rises Amid General Price Optimism
Increases of more than a nickel dominated the cash marketyesterday as strong demand and chilly weather in core populationareas mixed with a surging futures screen to produce bullishresults. While many traders were surprised to see prices at theircurrent levels, they also agreed that this bull run does not appearlikely to go away any time soon.
Most Prices Flat, But Chill Lifts Midcontinent, California
Flat pricing dominated much of the swing market Monday, butquotes ranged to about a nickel higher in the Midcontinent/Midwestand Southwest/California regions. Colder Midwest weather and a bitof chill on the West Coast built up some extra demand in thosemarkets, traders said.
Northeast Plunges Contrast With Overall Flat Pricing
Flat pricing dominated the cash market again Thursday, butregion-specific variations also continued. While numbers saw littlechange in the Gulf Coast, Midcontinent/Midwest and Southwest,Northeast deliveries took a dive and Rockies pipes saw gains ofabout a nickel or so. The Rockies and Northeast price movements,though divergent, were based on the same influences: changingweather. The East Coast is entering a warm-up period; meanwhile,recent record-setting warmth in the Rockies was a thing of the pastas a stormy cool front moved through the region toward the Plainsstates.
Big Role Seen for Canadian Gas in 30 Tcf Market
As might be expected at a Calgary conference where producersdominated attendance and the first day’s panels, bullishness onfuture gas prices ran rampant despite last week’s price slump.Emphasizing the challenges and opportunities in reaching aprojected 30 Tcf/year market by the 2010s, speakers at Ziff EnergyGroup’s North American Gas Strategies conference agreed thatCanadian gas is well positioned to benefit both volume-wise andprice-wise in the coming years.
Big Role Seen for Canadian Gas in 30 Tcf Market
As might be expected at a Calgary conference where producersdominated attendance and the first day’s panels, bullishness onfuture gas prices ran rampant despite the current week’s slump.Emphasizing the challenges and opportunities in reaching aprojected 30 Tcf/year market by the 2010s, speakers at Ziff EnergyGroup’s “North American Gas Strategies” conference agreed Mondaythat Canadian gas is well positioned to benefit both volume-wiseand price-wise in the coming years.
Flat Cash Prices Ignore New Storms, Soaring Screen
Storms and screen-those were the two big “S” words thatdominated trader conversations Monday. Yet despite weekend lossesof South Texas production to Hurricane Bret, more tropicaldisturbances lining up in the Atlantic and a spectacular push bythe September Henry Hub futures contract to finish above $3, cashprices found themselves hard-pressed to do much more than standtheir ground. Except for some small upticks in the West, mostpoints saw little if any price movement.
Despite Warm Weather Traders Don Bear Coats
After a volatile three days of seller-dominated trading Tuesday,Wednesday and Thursday last week, the futures market was quietFriday as light pre-weekend short covering was almost perfectlymatched by follow-through selling. The August contract could manageonly a 4.5-cent trading range before finishing 0.1 cents higher forthe day at $2.163. Estimated volume was relatively modest, with55,158 contracts changing hands.