Price movement was mixed Monday, with gains dominating slightly in the Gulf Coast but the rest of the market mostly softer. Except for triple-digit plunges in the Rockies, in most cases points did not stray very far up or down from flat. Forecasts of colder post-holiday weather in most of the East early this week were proving to be overstated, and the storage report-driven spike of 49.2 cents last Wednesday had little impact in supporting most cash trading points.
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Northeast Still Soft, But Most of Market Rebounds
Several retreating Northeast citygates failed to join rebounds from weekend weakness in the rest of the cash market Monday. In addition to prior-trading day support from Friday’s 16.4-cent rally by December futures and the return of industrial load from weekend hiatus, heating demand was picking up again in the Midwest and South after brief warming trends going into the weekend.
Gustav Threat Keeps Gas Markets Riding Higher
Only a few flat Rockies points were left out of continuing gains in the rest of the cash market Wednesday. Initial evacuations of nonessential personnel were beginning at offshore installations as the expected path of Tropical Storm Gustav made it appear more likely that the storm will plow through the central Gulf of Mexico’s (GOM) production infrastructure.
Second Consecutive Bearish Week Leaves Futures at $10.57
After dropping $3.15 — or 23% — through Thursday from the move’s high back on July 2 of $13.694, August natural gas futures were given a rest on Friday as the contract closed at $10.570, up 3.3 cents on the day but $1.334 lower than the previous week’s close. Trading on Friday was more notable for what was missing on the day, which was an expected round of short-covering ahead of the weekend due to concerns surrounding numerous tropical disturbances and East Coast heat.
Nearly All Points Up as Heat Levels Increase
Flat quotes at four points were the only exceptions to rising prices in the rest of the cash market Tuesday. The previous day’s 5.5-cent gain by August futures may have helped stimulate the rally to some extent, but it’s likely that forecasts of Wednesday peak temperatures from the 80s through the 100s in nearly the entire U.S. played a greater role.
Shell Scuttles Beaufort Sea Drilling Program
An ongoing legal dispute will delay Royal Dutch Shell’s plans to drill for oil and natural gas in the Beaufort Sea offshore Alaska through the rest of the year, the oil major said Friday.
Cheniere’s Sabine Pass LNG Terminal, Pipeline Set to Go
Cheniere Energy has received authorization for commissioning activities at its new Sabine Pass LNG terminal and to put its Sabine Pass pipeline segment into service in advance of the rest of the new Creole Trail line as part of the commissioning activities. Several LNG cargoes are expected to be delivered into the Sabine Pass terminal from Nigeria in late March or early April.
Cheniere’s Sabine Pass LNG Terminal, Pipeline Set to Go
Cheniere Energy has received authorization for commissioning activities at its new Sabine Pass LNG terminal and to put its Sabine Pass pipeline segment into service in advance of the rest of the new Creole Trail line as part of the commissioning activities. Several LNG cargoes are expected to be delivered into the Sabine Pass terminal from Nigeria in late March or early April.
Futures Trade North of $9 Again as Cold Continues
Backed by cold forecasts for the rest of February and surging petroleum prices, the March natural gas futures contract continued their recent impressive show of strength Wednesday by reaching a high of $9.110 on the day before retreating. The prompt-month contract recorded a low of $8.910 before settling at $8.965, down 1.2 cents from Tuesday’s close.
Raymond James Forecasts ‘Ugly’ Gas Prices for Rest of Year
Despite Punxsutawney Phil’s prediction on Groundhog Day of a longer winter, the near-term outlook for natural gas is “very bearish,” and the second half of winter and the rest of 2008 “will be ugly for gas prices,” Raymond James & Associates Inc. said last week.