With natural gas stocks at levels below the seasonal norm after a summer of market rebalancing, analysts at Bank of America Merrill Lynch (BofA) Monday lifted their 2013 average gas price forecast by 25 cents to $3.75/MMBtu.
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Hot-Cold Combo, Screen Push All Points Higher
Though forecasts of seasonal springtime temperatures remain the norm for most areas, the cash market was able to find enough traction in weather-based demand to rise at all points Wednesday. It also derived support from the run-up of 6.8 cents in Tuesday’s expiration-day trading of May futures.
Most Points See Little Change Either Up or Down
Close-to-flat price movement in either direction was the norm in the cash market Wednesday as prior-day futures support from a gain of 6.1 cents by the May contract Tuesday was pitted against generally light heating load and the absence of any substantive cooling load yet.
EarthSat Forecast Calls for Cold November, Cold Winter Ahead
This winter will be colder than last year and much closer to the 30-year norm for the national average expectation, according to MDA EarthSat Energy Weather’s Winter Outlook, which concurred with a winter forecast by AccuWeather issued earlier this month. EarthSat also set 3:1 odds for a colder-than-normal November in the eastern United States.
Oil-Natural Gas Price Increase Gap Could Force Switching, Analyst Says
While prices for all of the energies have been on the rise for the past year, the price increases in natural gas and crude oil have not been proportionate, a departure from the norm, according to a new Merrill Lynch study.
CPUC Awards Energy Efficiency Grants; SoCalGas Incentive Reward
Although not without a degree of dissension that has become the norm, the California Public Utilities Commission Thursday agreed to grant an additional $67 million in public goods charge monies for energy efficiency programs this year and next, and to give Southern California Gas Co. a $6.3 million reward for its recent natural gas procurement program under an incentive rate mechanism in place for the past nine years.
WSI: March, April Heating Demand to Drop Below Norm in Heavily-Populated Areas
For the next three months, forecaster WSI Corp. is forecasting cooler-than-normal temperatures in the central and southern Rockies, central and southern Plains and Pacific Northwest.Warmer-than-normal temperatures are expected in California and Nevada, the northern Rockies and Plains, as well as all areas east of the Mississippi River.
WSI: March, April Heating Demand to Drop Below Norm in Heavily-Populated Areas
For the next three months, forecaster WSI Corp. is forecasting cooler-than-normal temperatures in the central and southern Rockies, central and southern Plains and Pacific Northwest.Warmer-than-normal temperatures are expected in California and Nevada, the northern Rockies and Plains, as well as all areas east of the Mississippi River.
Electric Load Pushes Cash Market Significantly Higher
Increases of more than a dime were the norm Monday as 80-90degree temperatures throughout the eastern half of the country andthe ensuing electric generation load caused gas prices at allpoints to rise substantially. New York Citygate led the way withprices increasing from the low $2.50s on Friday to the mid $2.70syesterday. The need for Northeast electric generation was socritical yesterday that the New England ISO issued a “powerwarning” and asked consumers to voluntarily curb power use.
Transportation Note
Replacement of its A-Line north of Stanfield, OR, is keepingKingsgate capacity of PG&E GT-NW limited to 2,250 MMcf/d-370MMcf/d under the April norm-through Friday. Hydrostatic testing ofthe line at Station 6-A will further limit Kinggate to 2,190 MMcf/dApril 19-22.