As a marketer had predicted a day earlier, a majority of the cash market was able to continue ascending Tuesday — but by considerably smaller amounts (except in the rebounding Rockies) than on Monday. In addition, there were more flat to softer points as cooling trends began to reduce power generation demand in key northern market areas.
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Softness Again, But Lighter Than Before; Rockies Extend Ascent
While declines continued at most points, the cash market was relatively stronger on Wednesday as the drops were smaller than the ones on Tuesday in nearly every case. The day also recorded a few more points than before showing moderate upticks.
Most Points Still Up, But Signs of Weakness
Prices continued to rise in the cash market Wednesday, but the gains were considerably smaller than those of a day earlier. And not only were there more points recording flat to lower numbers Wednesday, but the losses were larger in several cases. Trends toward milder temperatures in some areas were seen as responsible for the weakening of a still upwardly mobile market.
Softening Continues, But Slows Quite a Bit
Prices continued to fall at nearly all points Tuesday, but the declines were considerably smaller than Monday’s, and the exceptions were a flat Sumas and a small gain of about a nickel at Texas Eastern-East Texas. The increasing likelihood that Tropical Storm Ernesto will avoid the Gulf of Mexico production area, massive screen weakness on the day before and a continued dearth of substantive cooling load outside the South and Southwest were cited as factors in the softness.
Prices Continue to Drop, But by Lesser Amounts
Prices continued to drop Friday at all points, but the declines were quite a bit smaller than the ones that preceded them on Thursday. The softness was anticipated as cooling load remained relatively light outside the southern third of the U.S. and the screen had fallen in six straight trading sessions before eking out a small gain Friday.
Price Gains Continue, But in Smaller Amounts
The cold spell currently enveloping Canada and most of the U.S. again propelled the spot market higher Thursday, but the advances were considerably smaller than the previous day’s spikes and were interspersed with flat to moderately lower numbers at a few points in the Gulf Coast and Midcontinent.
Price Gains Continue, But in Smaller Amounts
Cash prices continued to rise overall Tuesday, registering dollar-plus increases in several instances, but the upticks were smaller than Monday’s spikes at almost all points. Gulf Coast pipelines with offshore connections reported shut-ins prompted by Hurricane Katrina starting to decline, but Minerals Management Service (MMS) said its count of shut-in Gulf of Mexico (GOM) gas production had risen to 8.798 Bcf/d Tuesday, or about 88% of normal output. GOM oil outages went up to 1.43 million bbl/d, or a whopping 95% of regular GOM supply, MMS said.
Retail Gas Rate Hike Approved for SCANA’s SC Subsidiary
The retail natural gas base rates of South Carolina Electric & Gas Co.’s (SCE&G) would increase 11.3% for all of the company’s 283,000 residential customers, while smaller commercial customers would pay 4.8% more and large industrial customers would pay 6.4% more than they currently pay, according to a settlement agreement with the state’s Office of Regulatory Staff (ORS).
Most of East Keeps Rising; West Mainly Softer
Prices continued to rise at nearly all eastern points Tuesday, although by considerably smaller amounts than the soaring numbers seen the day before. However, a few touches of flatness were surfacing in the East, and a couple of Midcontinent pipes recorded drops of about a nickel.
Most Points Lower; ‘Major’ Friday Softness Likely
Prices were mostly softer again Thursday, but the declines were smaller than Wednesday’s in nearly all cases and a few flat to slightly higher points emerged Thursday. Although moderating weather trends were under way, temperatures in the Northeast and Midwest are due to remain below normal entering the weekend, and highs in the 100s will continue in the desert Southwest.