Following four days of mixed price movement, Friday’s cash market emulated the one a week earlier in which all points recorded drops. Cooling load was due to fall during the weekend in some key power generation markets for gas; the screen had provided strongly negative guidance the day before with a 32-cent dive by September futures, and the usual weekend loss of industrial load was another factor in the softness.
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Screen, Lack of Weather Load Send Prices Diving
Predictably, cash numbers emulated the expiration-day plunge in May futures by taking swan dives themselves Thursday. A widespread dearth of significant weather-related demand only threw more fuel on the price fire sale, and the announcement of a sizeable storage injection heaped on a little extra bearishness in late business.
Most Points Near Standstill; Weekend Dips Expected
Much of the cash market emulated the March futures contract Thursday — barely budging from where it stood the day before. Outside of some sizeable drops at Northeast citygates, not many points ventured any farther than about a nickel up or down from flat. Weather turning milder again in several areas after going frigid at midweek was cited for the failure of most prices to extend Wednesday’s gains.