Pennies

Physical gas prices overall were flat Wednesday with most price averages fluctuating within a couple of pennies. Even the typically volatile Northeast traded within 1-2 cents of Tuesday’s prices.

Physical natural gas prices on average for weekend and Monday delivery added a couple of pennies Friday as gains throughout a majority of the country overcame some losses in the Midwest, Great Lakes and Northeast. Seesawing weather conditions were expected to result in Monday temperatures slightly to much above normal in the Midwest.

Physical natural gas prices fell a couple of pennies on average Wednesday, but if constrained market points in the East on pipelines such as Algonquin, Iroquois, Transco, and Tennessee were held out of the mix, then the overall market loss would increase to about a nickel. Futures trading was light and traders suggest now might be a good time to sell irrespective of Thursday’s inventory report. At the close of futures trading April fell 5.9 cents to $3.470 and May dropped 5.6 cents to $3.519.

Physical natural gas prices Wednesday eased a couple of pennies in an overall broad decline. However, if volatile New England points on pipelines such as Iroquois, Algonquin, and portions of Tennessee are factored in, the decline is 27 cents. No more than a handful of locations were able to post gains. At the close of futures trading March had added 7.6 cents to $3.306 and April was up by 7.5 cents to $3.371. March crude oil slipped 50 cents to $97.01/bbl.

The cash market was a “Tale of Two Cities” Tuesday as the bulk of locations meandered within a couple of pennies of Monday’s settlement, but the swooning Northeast suffered $1 plus declines as near-term weather was expected to moderate. Futures prices resorted to a mixed finish in light trading, and at the close April had risen 0.1 cent to $2.356 and May had dropped 1.0 cents to $2.462. April crude oil followed weak equity markets lower and tumbled $2.02 to $104.70/bbl.

Gains were still small, but a few points that had been flat a day earlier were beginning to record upticks of a couple of pennies or so Thursday. Cooling load was bolstered by continuing high temperatures throughout the South being joined by forecasts of huge peak temperature jumps in parts of the Midwest that were still relatively low as recently as Thursday.

February natural gas futures declined by a few more pennies on Monday as traders — after a week of fluctuating forecasts — were still attempting to get a better handle on what the weather picture will be like in the coming weeks. The prompt-month contract traded between $4.322 and $4.450 before closing the regular session at $4.399, down 2.3 cents from last week.

Natural gas futures gave back a few pennies on Friday but still settled north of $4 for the second straight day as the frenzy of tropical weather activity, which to date has spared U.S. energy interests, could be lining up for a Gulf of Mexico strike by the end of the month.

Aided by moderate screen weakness the prior day, cash point averages on Thursday for Friday delivery came off a couple of pennies at a majority of locations with one point apiece in the Northeast, Texas, Rockies and the West shedding a dime while Dawn in the Midwest dropped 20 cents.