Potential

Following a topsy-turvy span of trading in which prices fell Thursday as quickly as they rose Wednesday, natural gas futures sputtered sideways to slightly higher Friday as traders gently covered shorts ahead of the weekend and the Monday expiration of the August contract. August closed 3.4 cents higher at $2.936. For the second day in a row, volume in the gas pit was heavy with an estimated 171,719 contracts changing hands.

Following a topsy-turvy span of trading in which prices fell Thursday as quickly as they rose Wednesday, natural gas futures sputtered sideways to slightly higher Friday as traders gently covered shorts ahead of the weekend and the Monday expiration of the August contract. August closed 3.4 cents higher at $2.936. For the second day in a row, volume in the gas pit was heavy with an estimated 171,719 contracts changing hands.

As part of FERC’s investigation into energy prices and potential manipulation in the western gas and power markets, it has requested some general information on the methodology Natural Gas Intelligence uses in collecting, calculating and publishing natural gas price information (see Intelligence Press, Inc.’s web site: http://intelligencepress.com/methodology.html). The Commission has requested this information by June 4 under Docket No. PA02-2-000.

As part of FERC’s investigation into energy prices and potential manipulation in the western gas and power markets, it has requested some general information on the methodology Natural Gas Intelligence uses in collecting, calculating and publishing natural gas price information (see Intelligence Press, Inc.’s web site: http://intelligencepress.com/methodology.html). The Commission has requested this information by June 4 under Docket No. PA02-2-000.

Prices continued to recede along with severe winter weather Wednesday. The declines also continued to grow more consistent across geographical lines. With the exception of a plunge of more than 40 cents at the Florida citygate (which still left it the market’s most expensive point), virtually all other points fell between about a nickel and 15 cents.

After suffering through the World Trade Center tragedy, electronic energy marketplace TradeSpark LP managed a significant rebound, producing transaction, volume and revenue growth. The trading system, which was formed by eSpeed, Inc., Cantor Fitzgerald and five of the largest U.S. energy producers/distributors, traded more than $40.2 billion (notional value) in energy products in the fourth quarter and more than $150 billion since its inception in October 2000, the company said on Tuesday.

In a story that ran in Daily GPI on Wednesday, titled “TradeSpark Rebounds, Eyes Potential Clearing Services,” Cantor Fitzgerald was mentioned as the most likely entity to perform clearing services for the TradeSpark electronic energy exchange (see Daily GPI, Feb. 13). However, TradeSpark representatives said it is too early to be absolutely certain that Cantor Fitzgerald will perform those services. Market participants and TradeSpark officials still have significant work to do before clearing services can be put in place.

After suffering through the World Trade Center tragedy, electronic energy marketplace TradeSpark LP managed a significant rebound, producing transaction, volume and revenue growth. The trading system, which was formed by eSpeed, Inc., Cantor Fitzgerald and five of the largest U.S. energy producers/distributors, traded more than $40.2 billion (notional value) in energy products in the fourth quarter and more than $150 billion since its inception in October 2000, the company said on Tuesday.

In what it dubs as a “synthesis” of proven operating steps in both eastern and western markets, California’s non-profit electricity transmission grid operator, Cal-ISO, last Wednesday released its draft 2002 Market Design Plan as a starting point that it plans to refine later this month with input from market participants. The plan’s overall objective for what eventually must be a federally approved blueprint is to shrink the grid operator’s real-time market and provide more future wholesale price stability, according to Cal-ISO’s chief architect for the plan.