Exceptions

Peregrine Keystone Gas Pipeline LLC has abandoned its plans for a gathering system in the Marcellus Shale of southwest Pennsylvania, the final chapter in the efforts of three companies that had sought public utility status for projects in the state.

With only a few exceptions all points rose Thursday with eastern points registering the strongest gains and weakness limited to a few points in the West.

With some notable exceptions in the Western Canada/Pacific Northwest area, most points fell Friday because of generally milder weather trends in some regions, the previous day’s 2.3-cent drop by December futures and the usual drop of industrial demand associated with a weekend.

Flat numbers at Tennessee Zone 6 and the PG&E citygate and about a nickel loss at Dracut were the only exceptions to fairly strong price gains Wednesday everywhere else in the market. Temperatures were staying fairly mild across the southern third of the United States, but with lows in the 30s and 40s forecast for Thursday north of there into Canada, it was obvious that heating demand is starting to play an increasing role in the gas price equation.

A few flat to about a nickel higher points in the Rockies, where Wednesday lows were due to sink into the teens, were the exceptions to price dips throughout the rest of the market Tuesday. A futures decline of 9.7 cents a day earlier contributed to the bearishness along with analyst reports of early February forecasts indicating that the weather would not be quite as cold as previously expected.

A few flat to about a nickel higher points in the Rockies, where Wednesday lows were due to sink into the teens, were the exceptions to price dips throughout the rest of the market Tuesday. A futures decline of 9.7 cents a day earlier contributed to the bearishness along with analyst reports of early February forecasts indicating that the weather would not be quite as cold as previously expected.

Flat quotes at four points were the only exceptions to rising prices in the rest of the cash market Tuesday. The previous day’s 5.5-cent gain by August futures may have helped stimulate the rally to some extent, but it’s likely that forecasts of Wednesday peak temperatures from the 80s through the 100s in nearly the entire U.S. played a greater role.

Flat performances at the Southern California border and the Kern Delivery point in Arizona/Nevada were the only exceptions to cash prices continuing to rise across the board Tuesday. Forecasts of Wednesday lows in the 20s and 30s (and occasionally in the teens) from the Northeast through the Midwest and Upper Plains into the Rockies kept heating load at a relatively strong level for late March, and the cash market had extra support from the previous day’s 26.4-cent increase by April futures.

A drop of about a nickel at the PG&E citygate and flat Sumas numbers were the only exceptions to a continuation of rising prices throughout the spot market Wednesday. Although temperatures are fluctuating in some areas, this week’s cold wave in certain regions is proving to be more tenacious than the short-lived ones that dominated the first couple of months of 2008.