Midpoint

Spot prices continued to wither Wednesday due to a combination of relatively moderate temperatures in several regions around the midpoint of what is normally the hottest month of the year and further softness in prior-day futures. And despite continuing deficits of current storage compared to year-ago levels and the five-year average, traders appear unconcerned about inventories, especially with what was generally expected to be a very busy Atlantic hurricane season having little impact so far on Gulf of Mexico output.

With linepack falling to around the midpoint between its minimum and maximum target levels, Pacific Gas & Electric ended a systemwide high-inventory OFO Saturday after it had been in effect for two days. However, the utility said its California Gas Transmission (CGT) system’s Baja Path from the Southern California border was being constrained by 60 MMcf/d each day Friday and Saturday. “High overdeliveries earlier in the week resulted in sustained high system inventory, which we are still managing,” PG&E said. “These constraints will ensure the safe operation of PG&E’s system. While every attempt is made by CGT to avoid firm service level cuts, firm supplies coming into PG&E’s system on the Baja Path will be impacted by these constraints.”

At the midpoint in the Atlantic hurricane season on Sept. 10, it was already clear that hurricane forecasts this year would fall a little short of the mark. But no one could have predicted a record number of named storms (eight) and intense hurricanes (three) in August and that four hurricanes would target one state, Florida. Some forecasters believe the season will remain restless through November.

At the midpoint in the hurricane season on Sept. 10, it was already clear that Atlantic hurricane forecasts this year fell a little short of the mark. But no one could have predicted that this August would have a record number of named storms (eight) and intense hurricanes (three). September also is shaping up to have higher than normal tropical activity, and some forecasters believe this season will remain active through November.