Milder

Thursday’s market was a near-repeat of the one the day before: moderate softening in the East but closer to flat in the West. The main differences were smaller eastern losses (virtually all declines were around a dime or less Thursday) and the fact that a few western points, primarily PG&E-related, were able to eke out modest gains.

Mostly moderate softness dominated the cash market Tuesday, as a falling screen and moderating weather were the primary influences. Price movement ranged from 1-6 cents down at several western points, while generally larger drops in the East went from about a nickel to down about a quarter on the Appalachian pipes. The PG&E citygate managed to eke out a small gain.

Weekend prices were soft as expected, but probably fell less than many traders were anticipating. Except for sizeable losses of 20-30 cents or more in the Rockies/San Juan and at PG&E-related points, nearly all of Friday’s declines were 15 cents or less, and a majority of those were around a nickel.

It had seemed Wednesday that strong energy futures and an anemic storage build would keep cash prices rising at least until the weekend. But an abrupt screen about-face Thursday combined with moderating temperatures in key southern and northern market areas and sent prices lower, generally down between about a nickel and a little more than a dime.

Despite a trend toward milder weather in virtually all regions,the great majority of the swing market was seeing flat to slightlyhigher prices Wednesday. Considering the weather and little supportfrom a moderately higher Nymex screen, it must have been cash-outprices that kept late-December quotes from continuing to fall, onesource suggested.