The swing market maintained an upward track Wednesday, butmomentum slowed with increases of a dime or less at most points.Sources reported little change from Tuesday in October numbers asemphasis began shifting more toward bidweek.
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Prices Slightly Softer; Descent Likely to Get Steeper
Cash prices were unable to sustain this week’s earlier upwardmomentum and were turning modestly softer Wednesday. Severalsources expected declines to grow greater today since most of thescreen’s dive of nearly a dime Wednesday followed release of AGA’sstorage report, well after cash trading had been completed.
April Price Declines Accelerate; May Moderately Softer
The slippage in April swing prices that had begun mildlyWednesday gained more momentum Thursday as quotes fell by about anickel or more almost across the board except in California, led bydrops of about 15 cents at some Northeast citygates. May bidweekprices also softened, but only by a couple of pennies or so in mostcases, sources said.
Storage, Chart Gap Gives Futures Bulls a Reason
Impressed with their handiwork following Tuesday’s positivemarket momentum, Nymex bulls were on the offensive again yesterdayas they loaded up on long positions ahead of yesterday’s storagereport. After opening at Tuesday’s high of $2.77, the Aprilcontract rumbled higher yesterday morning only to tumble back intothe $2.70s in the afternoon. The prompt month closed up 4.3 centsat $2.794.
CPUC Chief Sees Gas Restructuring as Sinking Ship
California’s top energy regulator thinks the momentum forrestructuring the state’s natural gas industry has lost most of itssteam. Responding to questions during a break at a statewide energyroundtable in San Diego last Tuesday, Richard Bilas, president ofthe California Public Utilities Commission, said he is unsure whenthe regulators will be able to make recommendations to the statelegislature for further gas unbundling.
CPUC Chief Sees Restructuring as Sinking Ship
California’s top energy regulator thinks the momentum forrestructuring the state’s natural gas industry has lost most of itssteam. Responding to questions during a break at a statewide energyroundtable in San Diego Tuesday, Richard Bilas, president of theCalifornia Public Utilities Commission, said he is unsure whenregulators will be able to make recommendations to the statelegislature for further gas unbundling.
January Shows Early Strength, Then Slips a Little
Futures traders were unable to maintain upward momentum earlyyesterday after an initial push above the 40-day moving average toa high of $2.715. January futures fell back sharply in the morningand then traded sideways throughout the rest of the day to end down2.6 cents at $2.629. February lost 1.7 cents to settle at $2.609.The 12-month strip only lost eight-tenths of a cent.
Warm Weather Depressing Cash Market Again
Prices failed to maintain the upward momentum that had begun theweek, slipping lower by a nickel to a dime at nearly all pointsTuesday. Traders were unable to ignore the cumulative negativedemand effect of more than 40 cities setting all-time hightemperature records for the month of November over the previousweek. And although one marketer said the screen had little bearingon day-to-day cash pricing, the nickel-plus drop in futuresprovided no support for cash.
CPUC, Not FERC, Will Decide Southern Trails’ Fate
Even with favorable momentum at FERC (see NGI, Oct. 11), Questar’s Southern Trails Pipeline won’t get very far without California regulatory help in removing what it views as the main impediment to its locking up multi-year deals with at least three large end-users who currently ship gas on SoCalGas.
CPUC, Not FERC, Will Decide Southern Trails’ Fate
Even with favorable momentum at FERC Questar’s Southern TrailsPipeline won’t get very far without California regulatory help inremoving what it views as the main impediment to its locking upmulti-year deals with at least three large end-users who currentlyship gas on SoCalGas.