Spots

Spots cash prices played catch-up with the screen in Friday’s trading. The average overall loss was 34 cents, and all actively traded points endured declines in the 30-cent area. Traders see the highs for the year in place and see mounting fundamental pressure on prices in the spring and summer. At the close of futures trading, June had risen 1.6 cents to $4.041 and July also had gained 1.6 cents to $4.093. June crude oil, aided by a supportive employment report, gained $1.62 to $95.61/bbl.

Speculation about potential replacements for two Obama administration officials who are leaving top spots at energy-related agencies continues, with nuclear physicist Ernest Moniz and Environmental Protection Agency (EPA) air pollution official Gina McCarthy reportedly among the leading candidates.

Speculation about potential replacements for two Obama administration officials who are leaving top spots at energy-related agencies continues, with nuclear physicist Ernest Moniz and Environmental Protection Agency (EPA) air pollution official Gina McCarthy reportedly among the leading candidates.

Canada’s Duvernay Shale has the potential to become one of the “most attractive liquids-rich plays” in North America, according to Wood Mackenzie analysts, who point to ExxonMobil Corp.’s decision this month to pay $3.1 billion for one of the play’s biggest developers as affirmation.

Cash quotes overall inched higher by about a penny, but flat to lower quotes at a few spots in the Great Lakes and Northeast were offset by firm Rockies prices and restriction-derived gains of about a nickel in California. The Energy Information Administration (EIA) reported a build of 30 Bcf, about what the market was looking for. Prices slumped initially but managed to climb back into the plus column before closing. At the end of the day June futures were 2.2 cents higher at $2.487 and July gained 1.9 cents to $2.569. June crude oil rose 27 cents to $97.08/bbl.

Futures managed to continue bounding higher Wednesday, but the physical market saw only modest gains around the country except for spots in the Northeast, which fell mostly between 25-45 cents.

Despite negative guidance from the prior-day screen, cash points for the most part Wednesday remained resilient with most spots picking up from a couple of pennies to just less than a dime.

Cash point averages on Monday for Tuesday delivery roared back into the plus column with most spots tacking on 15 to 20 cents across the country, leaving many traders “scratching their heads.”

Utilities, power generators and industrial end-users are going to have to pick their spots and move quickly to secure lower-priced natural gas in the increasingly higher-priced and challenging market, according to Val Trinkley of EnergyUSA, a NiSource company, who will be conducting a strategy workshop at GasMart 2008 in Chicago May 20-22.