Any skepticism over a “Siberian Express” arctic cold front making a stop in the Lower 48 was quickly wiped away last week as temperatures plummeted into the teens, 20s and low 30s across much of the Northeast, Midwest and Midcontinent. The only question left was just how long it would be parked over the central and eastern regions of the United States.
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Bears Look Past Storage Data, Oil Spike to Send Gas Futures Lower
In a typical display of its ability to shrug off undeniably bullish information, natural gas futures turned lower Wednesday afternoon following the announcement that a whopping 156 Bcf was pulled from underground storage facilities last week. After surpassing its Jan. 17 high of $2.38 to reach a new 5-week high at $2.41, the March contract plummeted 16.5 cents in 25 minutes to finish at $2.245, down 6 cents for the session.
PG&E Retail Gas Rates Down 64%, Compared to Last Year
On the heels of a statewide cold snap fostering near-record natural gas send-outs late last month, Pacifiic Gas and Electric Co. last week reported that its retail natural gas rates are down by 64% from their record high a year ago in the midst of California’s energy price/supply crisis. The average retail bill expected this month is about $41, based on a 27 cents/therm wholesale cost, compared to average bills for February 2001 of $113, based a $1.28/therm wholesale cost.
PG&E Retail Gas Rates Down 64%, Compared to Last Year
On the heels of a statewide cold snap fostering near-record natural gas send-outs last week, Pacifiic Gas and Electric Co. Monday reported that its retail natural gas rates are down by 64% from their record high a year ago in the midst of California’s energy price/supply crisis. The average retail bill expected this month is about $41, based on a 27 cents/therm wholesale cost, compared to average bills for February 2001 of $113, based a $1.28/therm wholesale cost.
Investor Fears Send Energy Stocks Plummeting
The impact of Enron’s tailspin on the energy industry has been more severe than expected, Merrill Lynch analyst Carl Kirst said in a research note reviewing the investor exodus from merchant energy stocks last week and the actions taken by El Paso, Calpine, NRG, Mirant and others to quell investor fears.
Investor Fears Send Energy Stocks Plummeting
Energy marketers and merchant power generators have watched their stocks drop precipitously as investors continue to run from companies even remotely associated with, or similar to, bankrupt Enron Corp. The walking wounded include Mirant (down about 36% by midday Friday from the prior Friday’s close), Calpine (down 37% for the week), Williams (-16%) and Dynegy (-17%), NRG (-14%), Aquila (-14%), El Paso (down 6%), and Reliant (-5%).
Southern: Regulations Send Wrong Price Signals to Generators
A recent national electricity transmission study conducted by Analysis Group/Economics Inc. found that it generally would be less expensive to locate power generation closer to consumers and build natural gas pipelines when needed, than to build generation near the gas fields and transmit the power to consumers located farther away.
Holiday Weekend, Mild Weather Send Prices Tumbling
No one appeared to be shocked when the September aftermarket got launched Friday with prices way below both bidweek and end-of-August levels. The double whammy of a long holiday weekend coupled with decidedly weak weather fundamentals proved to be a potent price-cutter. All Rockies/San Juan and a few other scattered points fell below $2. Rockies pipes were seeing their first sub-$2 averages since trading for June 11 flows.
Unchanged Fundamentals Send Futures Back Below $4.00
After climbing to its highest level since May 24, natural gas futures were sent spiraling lower Tuesday as traders weighed the impact of continued mild weather and an increasingly bearish storage situation. The prompt July contract took the selling squarely on the chin, tumbling 17.7 cents to close at $3.892. The remaining summer strip did not fair much better, closing 17.4 cents lower at $3.984.
Bears Send Futures Lower as Buyers Back Away
Adding to losses that began in the Sunday evening/Monday morning Access trading session, natural gas futures accelerated lower Monday as traders continued to price in the impact of seemingly plentiful supply in a market that is lacking a strong demand component. At the closing bell, the prompt June contract was 25.1 cents lower at $4.239. The July contract followed suit, also tumbling 25.1 cents to close at $4.314.