Pacific Gas & Electric issued a low-inventory Stage 1 OFOfor today. It carries penalties of $1/dth for negative dailyimbalances exceeding a relatively stringent 2% tolerance range.
Tag / Relatively
SubscribeRelatively
Articles from Relatively
Flatness Pervades Cash Market in Quiet Activity
A “comfort zone” was one trader’s description of the relativelyflat cash market over the last few days. And why not? After asummer chuck full of record setting temperatures and hurricanehype, supply and demand appear to have reached some semblance ofequilibrium. Many sellers saw their best prices early yesterdaybefore the market slipped lower in lackluster late morningdealings.
Mild Price Softness Seen as Relatively Strong
It didn’t surprise any traders when the cash market was theteensiest bit softer Wednesday. What did prompt some expressions ofamazement was that prices held up as strongly as they did. Betweena falling futures screen and overall weaker demand fundamentals, itseemed that prices should have dropped at least a nickel or more,one source said. Instead, few points were down more than a coupleof pennies, and some registered flat showings. Northern NaturalGas, serving a market area with near-winter-like chill, evenmanaged small gains.
FERC Okays Merger of Western Utilities
FERC yesterday readily approved the $4 billion merger of twowestern utilities-Sierra Pacific Power and Nevada Power. This was”relatively easy” compared to other deals that have come before theCommission, said Commissioner Vicky Bailey.
Prices Soar in East; Western Upticks Moderate
Traders who had been pleading for more market volatility duringa long period of relatively little price movement got it in spadesMonday-at least the ones who deal in eastern markets did. Numbersin the East rose by anywhere from 10 to 20 cents, with many pointsup by 15 cents or more. Western increases were considerably moresubdued; many were only a nickel or so, with San Juan Basin’suptick of about a dime leading the region.
March Higher as Bulls and Bears Mark Territory
A tight range and relatively quiet trading returned to thenatural gas futures pit on Monday following last Friday’s failedrally that briefly touched overhead resistance. And althoughyesterday’s highs did not approach the $1.875 notched last week,some traders felt the move was constructive for prices. Theprompt-March contract was limited to a 1.8-cent gain to finish at$1.818 for the day.
March Futures Rally On Short-Covering
Market participants cited short-covering and relatively strongcash prices as the main reasons for a 7.4-cent gain turned in bythe March Nymex contract Tuesday. The contract flirted around theminor resistance level of $1.81 for most of the day before settlingslightly higher at $1.818.
Short-Covering Buoys December into Expiration
Plentiful amounts of gas in underground storage and relativelywarm temperatures once again had bears licking their chopsyesterday. But after two attempts failed to push the market lower,short-covering activity propelled the market higher during the lasthour of trading. December posted a 5.2-cent gain to $2.149 Tuesday,and in doing so, became the first contract since March to post again on its last trading day.
Relatively Few NY Consumers Aware of Gas Competition
According to surveys conducted for the New York State PublicService Commission as part of its customer education and outreachprogram, 64% of residential customers and 62% of business customershave a general awareness of the move to competition in the electricindustry, and most customers are optimistic about the changestaking place. However only 23% of residential customers and 34% ofsmall businesses are aware of competition in the natural gasindustry.
Prices Soar on Spreading Heat, Wednesday Screen
Cash traders apparently decided to ignore a relatively bearishstorage report, a retreat in Wednesday afternoon’s Access futurestrading and a further small downtick on the screen Thursday.Instead they focused on Wednesday’s jump of almost 20 cents inregular futures business and tried to match it in cash businessThursday-coming close in the cases of Agua Dulce and NGPL-SouthTexas, which both rose about 14 cents. Other points moved up in thevicinity of a dime. Standout exceptions were Malin andintra-Alberta, which managed increases of only a nickel or so. Themildness of the Malin uptick occurred even though PG&E failedto extend Thursday’s OFO.