Softer

In a market with some inconsistencies, the overall price direction Thursday was overwhelmingly down, but scattered flat to higher points in the Gulf Coast and Northeast ran contrary to the general trend. Excluding those exceptions, losses ranged from about a nickel to nearly 40 cents.

For the cash gas market, apparently the moderate screen weakness on Wednesday trumped a small increase in hot weather Thursday. Prices for Friday flow ranged from flat or slightly higher at some points in the West to down nearly 20 cents.

A few flat points, mostly in the Gulf Coast, were conspicuous amid an overall softer market Thursday. Weak weather fundamentals in most areas and the associated lack of electric utility load were responsible for declines ranging from a little under a nickel to a little more than 20 cents, sources said.

The cash market stanched its bleeding somewhat as the July aftermarket got launched Wednesday, in the sense that most price declines were smaller than the day before and a few scattered points were flat to higher. The highly temperature-sensitive Cheyenne Hub and CIG even managed genuinely substantial rebounds of 20-25 cents or so due to Rockies-area weather starting to heat up.

To no one’s surprise, swing prices for the last day of June kept falling Tuesday. The usual suspects were at work: overall mild weather with daily highs unable to struggle higher than the 80s virtually everywhere outside the desert Southwest and Florida, and energy futures weakness the day before that remained in force Tuesday.

Moderate softness at some points in the Midwest and West was mixed into an overall market Wednesday that was flat to a little more than a dime higher. Rainstorms in much of the East were helping to dampen hotter weather that had been increasing power generation load earlier in the week, and cooler temperatures were moving southward into the Rockies, relieving some of the cooling load in that region as well.

A few flat to moderately higher points were in the mix, but for the most part cash prices saw no signs of a Monday rebound from the big weakness of weekend prices.

The slide that started Wednesday in cash prices got quite a bit steeper Thursday in trading done through the end of the month because of the Memorial Day holiday. Friday’s deals will be done for flows next Tuesday.

The cash market turned in a mixed performance Wednesday that was slightly weighted toward the downside. A few pockets of freezing temperatures remain, and induced gains of up to about a dime. Most points were flat to off a few cents, however, pressured by weak weather fundamentals in most regions.