Snowfall

With 60 inches of snowfall since late December in the Denver area and multiple weeks of sub-zero temperatures in eastern Utah and western Wyoming, Rockies producers and drilling service companies have waged a tough battle against wellhead freeze-offs and snow removal in an effort to maintain production.

After 60 inches of snowfall so far this winter in the Denver area and sub-zero temperatures in eastern Utah and western Wyoming, Rockies producers have battled wellhead freeze-offs and snow removal in an effort to maintain production.

In their first opportunity following the record-setting snowfall in the Northeast over the holiday weekend, natural gas traders bid the market higher in overnight (Monday) Access trading. However, the market could not sustain its early push above the $6.00 mark and sellers were eager to beat it back late Tuesday morning. The March contract finished at $5.911, up 6 cents for the session but more than a dime off its $6.02 top for the session.

Like the snowfall piling up in New England, long positions filled the natural gas pit on Thursday as bulls received yet another double-dose of supportive news in the form of fresh weather and storage (162 Bcf withdrawal) reports. By 11 a.m EST the January contract had blasted through the $5.00 mark. With sellers backing away, the prompt contract was able to continue higher in the afternoon to top out at a new 19-month continuation chart high at $5.15. January finished at $5.089, up 38 cents for the session.