Mild

The swing market was experiencing only mild aftershocks Thursday following the major earthquakes earlier in the week. Except for some gains in the Rockies, the price path remained downhill everywhere else but the slope was getting less steep. The calm-down was welcomed by traders, since it lessened the stress of price hyper-volatility and also allowed them to focus more on March bidweek business.

Despite forecasts that continue to call for above-normal weather into the second half of the month, natural gas futures prices held strong Monday, as fund buying lifted the market off early lows. At the closing bell the January contract finished at $4.359, down 2.4 cents for the session, but well above its low at $4.29.

Prices ranged from flat to down a little more than a dime in nearly all cases Wednesday; however, San Juan Basin numbers plunged by 40 cents. Most of the declines were fairly small at around a nickel or less.

Following an impressive eight-day, 60-cent rally, natural gas prices dipped Tuesday as traders grappled with the first bearish weather forecast in more than a month. The September contract closed at $3.166, down 10.1 cents on the day and just 0.6 cents above its low for the session. Estimated volume was heavy, with 109,501 contracts changing hands.

Despite widespread mild weather that argued for continued softness, most of the cash market managed to pull out of this week’s downhill slide Thursday and post remarkably consistent flat numbers. Only the Rockies, and to a lesser degree Northeast citygates and Columbia-Appalachia, recorded declines of more than a couple of pennies.

What may be bullish traders’ last weather hope in an otherwise disappointingly mild winter was developing Monday, but the price reaction was somewhat subdued. Most eastern points ranged from flat to slightly more than a nickel higher, while western gains tended to be larger at about a nickel to nearly 15 cents. The stronger performance in the West was largely attributed to recovery from weekend softening, the absence of high-linepack OFOs in California and demand in the Midwest for more Rockies supplies.

Nearly all points ranged from flat to down about a nickel or less Monday, but several sources regarded that as a relatively firm performance in light of the market’s generally bearish outlook. The Northeast was a bastion of strength with double-digit citygate increases, led by a gain of more than 45 cents at the Algonquin Citygate.

Unseasonably warm weather reduced energy demand in the Northeast, lowered prices and cut into KeySpan’s fourth quarter earnings. The company reported slightly lower earnings, excluding special items, of $99 million, or 71 cents per share, down from $100.9 million, or 75 cents per share, a year earlier. Wall Street analysts had expected earnings of 73-78 cents per share, with a consensus estimate of 75 cents. Including special items, earnings fell to $34.4 million, or 25 cents per share, from $58.9 million, or 44 cents per share.

Mild weather seen in the Southeast and a softer U.S. economy were not enough to trip up Southern Co.’s 2001 earnings results as several factors, including continued customer growth and cost controls, helped the utility giant post earnings for the year of $1.12 billion, or $1.62 per share, compared with reported earnings of $994 million, or $1.52 per share, in 2000.