Soften

With sub-zero wind chill factors due Wednesday, it probably didn’t surprise anyone to see most Northeast citygates skyrocketing by multi-dollar amounts Tuesday into quadruple-digit averages. But other than a lift of about a nickel in Dominion prices and a few larger gains in the Rockies, the super-strength of Northeast prices was not reflected elsewhere.

Overall prices tended to soften again Thursday, but the declines were considerably smaller than those on Wednesday in most cases. Except for a maintenance-related implosion in the Rockies market and a hefty drop on still-most-expensive Columbia-Appalachia (TCO), the great majority of points ranged from flat to less than a dime lower, and a couple saw moderate gains.

Cash prices continued to soften as expected Friday, but except for still-plunging Northeast citygates it was hardly the market “collapse” that more than one source had thought possible the day before. Outside the Northeast, nearly all the declines were between about a dime and 15 cents.

The spell of rising prices based on little or no fundamental support finally was broken Wednesday. Price movement ranged from flat to about 15 cents down, with most declines between about a nickel and a little more than a dime. Western numbers tended to see the smallest losses due to a blast of colder than expected weather that prompted a low-linepack OFO by El Paso (see Transportation Notes).

“No storm hype here,” a Gulf Coast producer said Friday morning in classic understatement. Usually the approach of a tropical storm toward the Gulf of Mexico production area is a surefire guarantee of higher gas prices, but it was not to be this time. Despite the likelihood of increasing offshore shut-ins over the weekend, traders sent cash prices lower by anywhere from a couple of cents to nearly 30 cents at border-SoCalGas; most declines were on either side of a dime.

In a reflection of Wednesday afternoon’s meager storagewithdrawal report and the accompanying screen downturn, most cashpoints fell between about a dime and 20 cents Thursday. The majorvariations from the overall market were Northern Californiaupticks, flat to barely lower numbers in the Rockies and San JuanBasin, and a Southern California border decline of nearly 40 cents.

Despite very nasty winter weather setting in or approaching inmany regions Friday, weekend prices were softer everywhere exceptat most West Coast points. Most declines ranged from about a dimeto 20 cents, but the PG&E citygate and Pacific Northwestregistered moderate advances and the Southern California border sawa whopping advance of almost $2.

Except for moderate California upticks, the cash marketcontinued to soften Friday but by much smaller amounts than the daybefore. Most points ranged from flat to down about 30 cents, butdeclines were larger at Stanfield and several Northeast citygates.

Much of the North American market seemed to be joining theCanadians in still being on holiday Tuesday. In very subduedactivity scattered points (mostly in the California/PacificNorthwest region) registered upticks, but most ranged from mildlysofter to down as much as about $3.50 at the Chicago citygate.