Spot month natural gas futures settled unchanged, but more deferred contracts retreated in active trading Tuesday on the New York Mercantile Exchange. Traders cited an interest by funds and managed accounts toward the sell side of the market, and in the longer term analysts suggested that if there were no major production-disrupting hurricanes this season, prices could fall more than another dollar.
Spot
Articles from Spot
Bulls Keep Building in Barnett Shale
Evidence that the gas-rich Barnett Shale remains on the industry’s front burner was easy to spot last week, as a new 42-inch diameter gas pipeline project was completed in the area by Energy Transfer Partners LP (ETP) and Crosstex Energy announced plans to build an $80 million natural gas processing facility.
Only 2 Points Left Out of Continuing Firmness
A drop of about a nickel at the PG&E citygate and flat Sumas numbers were the only exceptions to a continuation of rising prices throughout the spot market Wednesday. Although temperatures are fluctuating in some areas, this week’s cold wave in certain regions is proving to be more tenacious than the short-lived ones that dominated the first couple of months of 2008.
Cold Forecasts, Screen Boost Nearly All Points
Retreats by three New England citygates were the only exceptions to advancing spot prices Friday. The continuation of frigid weather into the weekend in several market areas or the impending return of it after a brief period of moderation, along with the spike of nearly 40 cents by March futures the day before, were chiefly responsible for the cash market strength.
Northeast Citygate Spikes Lead Gains at All Points
Spot prices soared as high as $16 Monday at Transco Zone 6-New York City as triple-digit spikes at Northeast citygates were way out in front of strong gains across the board. The weekend blast of cold across the Midwest and Northeast is proving to have more staying power and be more severe than forecasts had indicated late last week. The cash market also had support from last Friday’s 19.9-cent advance by March futures and the return of industrial load from weekend hiatus.
Most Points Fall on Cold Moderation, Weekend Factor
Uniform price movement nearly returned to the spot market Thursday. Only flat quotes for NGPL Amarillo Mainline and Cheyenne Hub kept all points from recording declines. Modest warming trends in the South and Northeast combined with the fact that Thursday’s trading covered the weekend through Monday — with the accompanying decline of industrial load — to induce the overall softness.
Most Prices Fall for Long Holiday Weekend
As expected, spot prices fell at most points Wednesday under the weight of prior-day futures weakness, the extra decline of industrial load during a four-day holiday weekend and only moderate heating load going into the weekend in such areas as the Northeast and South.
Colder Forecasts, Screen Boost All Cash Points
Uniformity of price change direction made one of its relatively rare (in recent months) returns to the spot market Tuesday when quotes arose across the board in trading for last-of-month flows. A cold front moving into the western sections of the Midwest Wednesday and freezing overnight temperatures in the Rockies and parts of Western Canada had heating load on the rise, and Monday’s 5.1-cent expiration-day increase by November futures chipped in a little extra support.
Prices Up at All Points; TS Karen Threat Unlikely
Uniform direction of price movement returned to the spot market Tuesday after a lengthy absence. Quotes rose across the board, with only one point failing to realize a double-digit advance. The gains were based primarily on a warm spell in the Northeast and the previous day’s 29-cent increase by the October futures contract, which will see its last day of trading Wednesday.
Cruickshank Takes Over Top MMS Post
Walter Cruickshank, deputy director of the Department of Interior’s Minerals Management Service (MMS), was tapped to take over the top spot to replace Johnnie Burton, who resigned last month (see Daily GPI, May 9).