Increases

The cash market had plenty of help in achieving increases at most locations Wednesday. There was the previous day’s rally by August futures, rising temperatures in several regions boosting power generation demand, and the lingering potential for a tropical storm approaching the offshore production area by early next week.

Marginal increases in temperature forecasts in several regions kept prices rising at nearly all points Tuesday. Otherwise, fundamentals such as slight prior-day futures weakness and the lack of any Atlantic tropical activity argued against any continued market firmness.

Possible sales of hundreds of millions of dollars in assets by the nation’s largest municipal utility to help avoid large rate increases are still being considered, according to Austin Beutner, the acting head of the Los Angeles Department of Water and Power (LADWP). An upcoming integrated resource plan is expected to show more detailed plans.

June natural gas futures carved out a modest advance Thursday after the release of government inventory data showed increases less than what the market was expecting.

Algonquin Gas Transmission said its interconnect with Tennessee Gas Pipeline at Mahwah (Meter station 00201) was restricted and sealed to capacity on Friday. No increases in receipts to Mahwah were accepted.

Tuesday’s upward momentum carried over to Wednesday as most cash point averages for Thursday delivery climbed. Increases were predominant in every region except the East, which saw a few gains sprinkled in amongst no changes and declines.

Since weather-based demand remained light to nonexistent for the weekend in most areas, price increases in a large majority of the cash market Friday could only be attributed to the previous day’s 17.3-cent futures rise following a moderately below-expectations storage injection report.

Since weather-based demand remained light to nonexistent for the weekend in most areas, price increases in a large majority of the cash market Friday could only be attributed to the previous day’s 17.3-cent futures rise following a moderately below-expectations storage injection report.

Production increases and a 22% increase in oil and gas revenues helped Newfield Exploration Co. report net income of $113 million (86 cents/share) in 4Q2009 compared with a loss of $789 million ($6.09/share) in the year-ago period.