Cash prices across the board followed through on Monday’s Nymexrise by gaining a dime (or more in some cases) yesterday, andexcept for the Alberta market, nobody had any plausible fundamentalreason to explain the changes. Ranges continued to tighten fromlast Friday’s and Monday’s wide-open spaces, a marketer said. Hethinks the market will continue to be range-bound “until we getsome cooling load.” Supply and demand are currently well balancedand storage inventories are far ahead of last year’s, so he doesn’texpect the gas market to heat up until the weather does, “and thatmay not happen until June [futures] is off the board.”
Articles from Sources
As sources had predicted, Wednesday’s run-up on the Nymex screenset the stage for cash price rises Thursday, which were abetted byfurther futures gains. There was even some expected cold weatherdemand in the central and eastern sections of the U.S. to help giveprices a little boost, traders said. Increases were on the modestside, mostly within a range of 2-5 cents.
Prices continued to rise Thursday in trading for both lateFebruary and March. It was mostly a response to the screen’sbelated run-up Wednesday, sources said, but there was enoughblizzard-like weather spreading out from the Upper Plains region togive prices a little extra boost.
February prices were flat to a little higher Monday, sourcesreported. One said buyers thought they would be able to knockprices down, “but you couldn’t.” There is plenty of demand and it’svirtually all storage-related, he went on. “All of a sudden we’reseeing February turn into an injection month,” and that’s what iskeeping demand high, he said
The March Nymex contract inched 3.2 cents higher to $2.270 onThursday, amid a session sources agreed was once again dominated bytechnicals. “This looks like a very strong trading range, sotoday’s result was to be expected,” a trader said. “March drifted afew cents toward the bottom of its range on Wednesday, so it makessense the contract would move higher today. Because the tradingrange is so tight right now, that is limiting how much March can goup,” he said.