Physical

All cash points retreated Tuesday with most sliding in double-digits as the physical market caught up with Monday’s late-session slide in futures and adjusted for continued weather moderation for much of March.

Physical natural gas prices for weekend and Monday delivery fell about 9 cents Friday as typically weak weekend loads combined with moderating weather to pummel prices lower.

Excluding the big weather-derived drops at eastern points, physical natural gas fell about 6.5 cents on Monday, a little more than the slip-sliding futures. At the close of futures trading March had fallen 4.6 cents to $2.431 and April had given up 3.6 cents to $2.620. March crude oil jumped $2.24 to $100.91/bbl.

The physical market was mostly quiet Friday and posted gains of about 2 cents, but that’s only if no one counted the meteoric gains caused by weather at numerous points from the Mid-Atlantic to New England. Futures were tame by comparison and the March contract was only able to carve out a 7-cent range. At the close March was unchanged from Thursday at $2.477, which is only 2.2 cents lower than the contract’s close the previous week.

Futures and cash prices worked lower Wednesday, but physical gas posted sharper losses as forecasts of milder weather prompted cash quotes mostly a dime to 15 cents lower with some spots in the Northeast declining between 20 to 30 cents. At the close of futures trading March had shed 2.4 cents to $2.448 and April had softened 3 cents to $2.598. March crude oil added 30 cents to $98.71/bbl.

Physical natural gas prices Tuesday bounded higher, led by expectations of significant drops in temperatures and stout power prices. Futures headed south as traders factored in expectations of storage data expected to swell the surplus still further. March slumped 7.8 cents to $2.472 and April skidded 11.0 cents to $2.628. March crude oil rose $1.50 to $98.41/bbl.

The physical and futures markets elected to part company Thursday with a majority of the cash market firming and futures heading south. While most cash points upticked by less than a dime for a second straight day, more than a handful of Northeast averages once again dropped by between 20 cents to nearly a half dollar.

Physical gas prices continued to move higher Tuesday as momentum carried forward from Monday’s surge and quotes at eastern points advanced by nearly a half-dollar. Futures bulls are beginning to stir, but short-term traders aren’t buying any kind of sustained advance. February futures advanced 2.9 cents to $2.554 and March was up by 2.1 cents to $2.601. March crude oil shed 63 cents to $98.95/bbl.

Tennessee lifted Wednesday an Imbalance Warning in Zones 0, L, 1, 2, 3 and 4 but continued to request that all parties match physical flow with scheduled quantities.