Remarkably

Ocean temperatures have increased “remarkably” in the equatorial Pacific in the last few weeks, and these El Niño conditions are likely to continue into early 2007, according to scientists with the Climate Prediction Center of the National Oceanic and Atmospheric Administration (NOAA).

In a move remarkably similar to the December 2000 rally to $10, natural gas futures accelerated their move higher Monday as cold weather forecasts and double-digit physical prices prompted waves of panic buying at Nymex. After extending past psychological resistance at $7.00 late Sunday night in computer-only Access trading, the March contract exploded to a new 25-month high at $9.20. It closed just off that level at $9.137.

Much of the cash market was remarkably consistent in moving lower Friday in trading for the Presidents Day weekend. A majority of points fell within a narrowly defined range of 5-10 cents. A couple of scattered points managed flat showings, while a few others held their declines to less than a nickel.

In a remarkably uniform display of softness, prices fell byabout a nickel Tuesday at nearly every point across the board.Rarely has the market been so consistent with the great majority ofdeclines clustered within the range of 3-7 cents and with nogeographical bias.

Cash prices proved remarkably resistant Friday to the softnessthat usually accompanies lowered demand for a weekend period. TheGulf Coast and Northeast citygates were essentially flat, whilemost of the small declines were concentrated in the West andMidcontinent. Sources attributed the relatively firm pricing tomodest support from a slightly higher futures screen, along withtrader anticipation of a return to hotter weather morecharacteristic of June than last week’s below-normal thermometerreadings throughout much of the East.

The cash market started out this week looking remarkably similarto the way it did last week, but on a reduced scale. Because pricesweren’t digging out from nearly as deep a weekend hole as the oneof Dec. 5-7, Monday’s increases weren’t quite as spectacular asthose from the previous week but were still significantnonetheless.