Physical

With overall weather fundamentals strengthening only marginally, prices continued to fall at a slight majority of points Monday.

FERC Administrative Law Judge (ALJ) Bruce Birchman last Monday certified under seal a joint offer of settlement that, if ultimately approved by the agency, would resolve all charges that Energy Transfer Partners’ Oasis Pipeline LP and affiliates discriminated against nonaffiliated shippers and charged excessive rates in violation of Section 311 of the Natural Gas Policy Act (NGPA).

Prices fell Monday at a large majority of points as the physical market felt selling pressure from the previous Friday’s 36.2-cent dive by April futures and spring-like temperatures in much of the South. Wintry conditions with lows approaching freezing remained in the Tuesday forecasts for parts of the Upper Midwest and northern New England, but otherwise those regions could expect relatively moderate weather.

As more trading volume swings to the electronic marketplace, Nymex Holdings, parent company of the more than 130-year-old physical energy and metals trading New York Mercantile Exchange (Nymex), is allegedly in talks with potential suitors to sell itself.

As more trading volume swings to the electronic marketplace, Nymex Holdings, parent company of the more than 130 year-old physical energy and metals trading New York Mercantile Exchange (Nymex), is allegedly in talks with potential suitors to sell itself.

Confirming that the transition from physical pit trading to electronic marketplaces is indeed impacting the way traders and exchanges do business, a Reuters article said Friday that Nymex Holdings, parent company of the New York Mercantile Exchange (Nymex), has plans to consolidate its energy and metals trading floors in an effort to cut costs. The question remains as to whether floor trading will ultimately go the way of the Dodo bird.

Confirming that the transition from physical pit trading to electronic marketplaces is indeed impacting the way traders and exchanges do business, a Reuters article said Friday that Nymex Holdings, parent company of the New York Mercantile Exchange (Nymex), has plans to consolidate its energy and metals trading floors in an effort to cut costs. The question remains as to whether floor trading will ultimately go the way of the Dodo bird.

As a trader had predicted, Monday’s 18.1-cent gain by May futures proved sufficient to boost nearly all of the cash market by double digits Tuesday. Physical gas got some extra support from weather fundamentals with colder temperatures returning to the Midwest and Northeast.

Dynegy Inc. will be focused on physical sales of electricity from company-owned generation assets following an agreement announced in late December to eliminate its final long-term wholesale power tolling contract with Louisiana-based Quachita Power LLC. The agreement will result in a 4Q2005 pre-tax charge of $360 million ($235 million after-tax), and will allow Dynegy to completely exit its once highly touted Customer Risk Management business.