Points

The cash market followed up a week dominated by sharply falling prices with an across-the-board rally Monday. Gains ranged from about a nickel to 30 cents, with those between 10 and 25 cents most common.

Triple-digit losses at Northeast citygates were the most spectacular in a day of general price plunges. Most non-Northeast points fell by anywhere from about 20 cents to 60 cents or so. Only Rockies/San Juan quotes saw flat to small declines.

A few flat to modestly higher points were arrayed against a wave of further declines Wednesday. Northeast citygates led the way lower with drops that exceeded half a dollar in some cases, although elsewhere the softness was considerably milder with numbers down between 2-3 cents and about a quarter.

Florida Gas Transmission advised shippers that it has received gas “at certain receipt points” in Zones 1, 2 and 3 containing high concentrations of hexane and heavier components that may interfere with operation of pipeline facilities. If the composition of the gas containing the objectionable components does not change, FGT said it may be required to limit such receipts. “If necessary, FGT will advise of the specific locations where these limits may be imposed,” a bulletin board posting said Wednesday.

Except for a few flat to slightly lower Northeast citygates and western points, most of the cash market continued to build on Wednesday’s advance with further large gains Thursday. And sources said that with the dazzling 38-cent spike in futures, it’s a pretty safe bet to expect more strength in cash numbers for the weekend.

Cold weather continued its grip in the Northeast, Midwest and inland West Tuesday, and extended its reach throughout the South except for the Florida peninsula. But what would normally seem to be bullish conditions were unable to prevent a broad retreat in cash prices.

Spikes of 40-50 cents or so Friday at San Juan Basin/Rockies points were in sharp contrast to losses of about 15 cents to more than 30 cents in the rest of the market.

Cash prices were mixed on Thursday with most points up or down a few cents but many sources had bearish expectations for Friday because of the 9-cent drop in November futures on Nymex and an apparently bearish storage report.

Prices were up across the board Tuesday and continuing to soar at most eastern points based on anticipation of major offshore production shut-ins resulting from Hurricane Lili. Though somewhat insulated from hurricane impacts, the Rockies joined in the overall upticks (unlike the day before) as forecasts of wintry weather approaching in much of the Rockies and Pacific Northwest lent some fundamental weather support to the regional market.