Spite

In spite of cooling trends in the South, Rockies and parts of the Midwest, prices fell at most points Tuesday. The modest addition of heating load and the previous day’s 6.7-cent increase by April futures were largely ineffective in countering overall bearish weather fundamentals.

In spite of much colder weather returning Friday to the Midcontinent/Midwest and prior-day futures support, cash prices fell at all points but one Thursday. On the bearish side, seasonal temperatures would continue for one more day in the Northeast, and a warming trend in the eastern half of the South meant fairly mild conditions will stretch from coast to coast across the southern tier of states Friday.

In spite of forecasts of frigid New Year’s Eve weather from the Northeast through the Midwest and into the Upper Plains, with even the South due to experience some sub-freezing lows, prices dropped at a large majority of points Tuesday. The overall softness even defied significant prior-day screen support from Monday’s 31-cent spike by expiring January futures.

El Paso Corp.’s quarterly earnings surged 190%, and in spite of the two Gulf Coast hurricanes that impacted operations in September, the pipeline group and the exploration and production (E&P) unit posted solid returns.

El Paso Corp. Thursday reported a 190% surge in quarterly earnings, and in spite of the two Gulf Coast hurricanes that impacted operations in September, the pipeline group and the exploration and production (E&P) unit posted solid returns.

July natural gas futures struggled to make it to the “plus” column Tuesday, but in spite of the firm finish short-term traders are anticipating a period of weakness before any further market advance. At the close July added 1.9 cents to $12.952 and August tacked on 1.8 cents to $13.055. July crude oil skidded 60 cents to $134.01/bbl.

July natural gas futures closed higher Wednesday in spite of another losing day for crude oil. Traders also ignored the completion of repairs to the Independence Hub production platform in the Gulf of Mexico and elected to focus on expected warm weather in Midwest and eastern energy markets. At the close of floor trading July futures were up 15.8 cents to $12.379 and August added 14.0 cents to $12.442. July crude oil skidded $2.01 to $122.30/bbl.

Prices rose at all points Thursday. But while quotes were firmer at most or all points Monday or Tuesday in spite of generally light weather-based load, this time they could count on some heating or cooling load in a few areas to go along with prior-day futures support. One source also cited storage buying as a market booster.

Prices continued to fall at most points Wednesday in spite of Thursday lows continuing to reach single digits or around zero in upper New England and much of the Midwest. Ongoing substitution of storage use for spot gas purchases, major prior-day screen weakness and looking ahead to weekend warming trends were the chief reasons for the cash market to keep softening in the face of what appears to be substantial fundamental weather demand.