Generally

After maintaining a facade of firmness for most of the week in the face of generally weak fundamental influences, the cash market fell at all but one point Friday, finally succumbing to the reality of little weather-based load, an ongoing lack of any tropical storm threats to offshore production, abundant storage inventories and a prior-day futures decline.

It definitely appears that the bloom is off the price rose that was sustained through much of September despite generally weak weather fundamentals. Only small gains at a few Rockies points were left out of declines everywhere else in trading that began the final week of September on Monday.

Prices rebounded by generally small amounts in most of the market Wednesday as the South is beginning to contribute more air conditioning load than earlier this week and is being abetted to a smaller degree by warming trends in the Midwest. The previous day’s screen gain of 3.9 cents also gave a modicum of positive guidance to cash numbers.

The August aftermarket began slightly softer at most points as traders regarded generally moderate mid-summer temperatures in the Northeast and Midwest and the usual weekend drop of industrial load as more important than the previous day’s 10.9-cent climb by September futures in their prompt-month debut.

Buffeted by prior-day futures weakness, the lack of any tropical threat to offshore production and generally moderate temperatures for early July in many areas, cash prices fell by double-digit amounts at all points Friday. The usual weekend layoff of industrial load also played a bearish role.

Cash prices were pushed lower at most locations Friday by a combination of prior-day futures softness, cool but generally moderate weather and the tendency of industrial load to take the weekend off.

Cash prices were pushed lower at most locations Friday by a combination of prior-day futures softness, cool but generally moderate weather and the tendency of industrial load to take the weekend off.

The oil and natural gas industry Wednesday generally welcomed the Obama administration’s proposed plan to open up the South Atlantic and Mid-Atlantic coasts and parts of the eastern Gulf of Mexico (GOM) to expanded exploratory and development activities, saying it was a good start. But others, such as the U.S. Chamber of Commerce and American Solutions, noted the the proposed plan was far from a sure thing, with President Obama stressing that the offshore areas “will be considered potential areas for development.”

The oil and natural gas industry Wednesday generally welcomed the Obama administration’s proposed plan to open up the South Atlantic and Mid-Atlantic coasts and parts of the eastern Gulf of Mexico (GOM) to expanded exploratory and development activities, saying it was a good start. But others, such as the U.S. Chamber of Commerce and American Solutions, noted the the proposed plan was far from a sure thing, with President Obama stressing that the offshore areas “will be considered potential areas for development.”