Fading

The western heat and Midwest/Northwest cold that had combined with energy futures strength to push prices higher earlier in the week were unable to sustain further increases Wednesday. Moderating weather trends and an initially softer screen caused swing quotes to range from flat to a little more than 15 cents lower; most dips were mild at less than a dime.

Spring is busting out all over — finally — and that translates to lower spot prices. Quotes fell across the board Thursday; a few drops were in single digits, but the rest were fairly consistent in all regions in ranging from a dime to just over 20 cents.

Just when the impact of Hurricane Claudette was quickly fading away, Tropical Depression Six entered the scene with route projections into the eastern Gulf of Mexico. The storm may have been a catalyst for the market to begin a correction Monday. Significant short covering Monday morning and technical buying interest in the afternoon propelled the August contract to a high of $5.18 and left it up 8.5 cents for the day at $5.107. The daily low was $5.030.

Finally, it was feeling more like spring than winter in nearly all market areas Wednesday, and the predictable market reaction was price declines ranging from barely lower to more than 60 cents, although the most common losses were between a dime and a quarter.

With tropical storm threats fading rapidly and demand fundamentals staying on the weak side, cash prices ignored a major expiration-day rebound by October futures and continued to fall everywhere except in the Rockies Thursday. The Rockies gains were small at a dime or less, while losses elsewhere tended to range from about 2 cents in Northern California to nearly half a dollar at some Northeast citygates.

Prices continued to soar Tuesday, as a precursor of winter spread from the Midwest into the Northeast and Southeast market areas. Gains tended to be even stronger than those recorded in Monday’s post-weekend rally, with a majority of points jumping by about half a dollar or more.

The tropical storm threat was fading, but hotter weather was returning in many areas, prompting mild firmness in the cash market Monday. Most points ranged from flat to as much as about 30 cents higher in the case of Transco Zone 6-NYC, but there were a few small downturns thrown into the mix.

The fading late-April swing market continued on a path of moderate softness Thursday. Except for plunges at some California points, where temperatures are cooling again after a flash of summer-like heat earlier in the week, other markets ranged from flat to down about 15 cents. A majority of declines were between a nickel and a dime.

Tax reform is taking front seat to electricity reform in Mexico, and officials say that hope is fading to change the country’s state-run power sector until the next session of congress convenes in September. The current congress adjourns April 30.