Lowest

With about a 10 Bcf withdrawal expected in this week’s storage report, working gas levels will end the withdrawal season with nearly 187 Bcf more in storage than average over the last 11 years, according to the Energy Information Administration’s data. That will mean more gas to meet summer power demand, but it probably won’t be enough to put downward pressure on prices, according to two industry experts.

After reaching the lowest levels since early March, the gas futures market got a boost last week from a smaller than expected storage injection and a downward revision to prior storage data on Thursday, which provided just enough steam for the September contract to end the week closer to its weekly high of $2.80 than Wednesday’s low of $2.64. However, September only managed to eke out a small 1.6-cent gain on Friday, ending the day at $2.761, just above its daily low of $2.755. Volume was light at 38,527, compared to 95,207 on Thursday.

Even with the lowest per-capita energy use among the 50 U.S. states, California is facing annual electricity growth that totals 20% over this first decade of the 21st Century, according to the draft “California Energy Outlook: Electricity and Natural Gas Trends Report” by the state energy commission. It is scheduled to be finalized by the five-member commission Sept. 5, along with a separate natural gas infrastructure report.

The average price of electricity in the United States decreased in 1999 for the sixth consecutive year to the lowest rates since 1990. The total decline in rates since 1994 is 3.6%, according to information released by the Energy Information Administration (EIA) in “Electric Sales and Revenue 1999.”

The average price of electricity in the United States decreasedin 1999ÿfor the sixth consecutive year to the lowest rates since1990.ÿ The total decline in rates since 1994 is 3.6%, according toinformationÿreleased yesterday by the Energy InformationAdministration (EIA) in “Electric Sales and Revenue 1999.”

Amid a swirl of pre-AGA storage speculation, the futures marketcontinued lower Wednesday, touching its lowest level so far thismonth. After a lower opening, the July contract quickly mapped outits high trade of the day at $2.36, before slipping 4 cents tofinish at $2.327. Estimated volume of 65,584 injected some lifeinto the market, following sub-45,000 trading sessions Monday andTuesday.

After plumbing to the lowest levels in over a month Monday, thefutures market rallied yesterday as scale down commercial buyingreceived unexpected support from local traders eager to reverseshort positions. The June contract finished at $2.200, up 2.4 centsfor the day.

After touching the lowest level in almost two weeks earlyMonday, the June futures market was bid higher throughout the restof the session as traders took profits from last week’s sell-off.June finished up 5.8 cents for the day at $2.311, just off its$2.32 high.

Though the May Henry Hub futures contract eventually settled fora small gain of less than a penny, it was the screen’s morningflirtation with the $2.15-17 area that got most of the credit for astrong performance Tuesday by the cash market. Cash rises tended tofade out going westward to virtually nothing in California trading,but virtually all eastern points were up at least a nickel and inmany cases saw increases approaching a dime.