Sources

For industry sources hoping for a winding down, if not conclusion, of California’s ongoing energy investigations, a state lawmaker told an industry meeting in San Francisco last Thursday that the beat will go on and on, but how soon any conclusions are drawn is anyone’s guess.

For several sources there were absolutely no ifs, ands or buts about it: Wednesday’s spikes of about 30 cents to a little more than 40 cents throughout eastern markets were caused by “storm hype,” pure and simple. Although Pacific Northwest and California points participated to a lesser degree in the overall bull market, most of the Rockies and San Juan Basin numbers were moderately softer.

As sources had correctly predicted, the market took its price cues Tuesday from the previous afternoon’s screen gain instead of continuing general weakness in fundamentals. The result was double-digit increases between about a dime and a little more than 20 cents at most points. The notable contrary position was in the Rockies, where flat to moderately lower numbers prevailed.

As sources had anticipated, Wednesday’s stall in this week’s bull market led to softer prices Thursday. A majority of losses were in the vicinity of a dime, but others ranged from only 1-2 cents down at a couple of Gulf Coast points to a drop of more than 30 cents at Transco’s Zone 6-NYC.

As sources had anticipated, forecasts of high temperatures once again infesting much of the nation were insufficient to overcome the double drag on prices of a big futures drop on the previous afternoon and the fall-off in industrial load that accompanies a weekend. Outside of continuing moderate firmness at Rockies and Pacific Northwest points, the rest of Friday’s market ranged from flat to about 20 cents lower. Declines on either side of a dime were most prevalent.

As sources had anticipated, forecasts of high temperatures once again infesting much of the nation were insufficient to overcome the double drag on prices of a big futures drop on the previous afternoon and the fall-off in industrial load that accompanies a weekend. Outside of continuing moderate firmness at Rockies and Pacific Northwest points, the rest of Friday’s market ranged from flat to about 20 cents lower. Declines on either side of a dime were most prevalent.

Prices recorded gains at all points Thursday, with nearly all of them in double digits. Sources cited the previous afternoon’s run-up in energy futures as the chief price booster, since air conditioning demand remained on the relatively mild side for mid-summer in the key Midwest and Northeast market areas. Increases were remarkably consistent across the market spectrum; few were less than a dime, and a majority ranged between about a dime and a little more than 20 cents.

Prices recorded gains at all points Thursday, with nearly all of them in double digits. Sources cited the previous afternoon’s run-up in energy futures as the chief price booster, since air conditioning demand remained on the relatively mild side for mid-summer in the key Midwest and Northeast market areas. Increases were remarkably consistent across the market spectrum; few were less than a dime, and a majority ranged between about a dime and a little more than 20 cents.

As NGI sources had expected, Thursday’s rise of about a dime in natural gas futures proved sufficient to outweigh moderating weather and the usual demand slump of a weekend period, producing moderate price gains at most eastern points Friday. In the West, however, Waha and PG&E-related points were the only ones to join the overall firmness. Most of the West ranged from flat to down about a nickel, although San Juan-Bondad recorded a whopping 36 cent plunge. Scattered eastern points were flat, but the majority rose by about a nickel to 15 cents.