Spread

The New York Mercantile Exchange Inc. (Nymex) announced Tuesday that a record 10,000 natural gas calendar spread options contracts were traded on Dec. 15, surpassing the previous record of 6,600 contracts on Oct. 15, 2004. “This record is a further indication that the energy industry continues to see the exchange as a reliable source of risk management, liquidity, and price transparency,” said James E. Newsome, president of Nymex.

Cash prices again relied on the continuing spread of cold weather and prior-day screen support to keep the overall market moving upward Friday. However, unlike the solid advances recorded in the first two days of December aftermarket trading, several flat to lower points — primarily in the West — surfaced in quotes for weekend flows.

On a day in which most of the market moved moderately higher as cold weather began to spread its reach into the South and parts of the West, Northeast citygates recorded triple-digit plunges Thursday after two previous days of spiking as high as $25.50. Non-Northeast price movement was generally small in ranging from a couple of pennies down to about 15 cents higher, but a few scattered points saw gains from about 20 cents to a little over half a dollar.

Although heating load was growing a bit Tuesday as colder temperatures spread farther south in the West and farther east into the Midwest and Midcontinent, prices were unable to sustain Monday’s big gains. Instead, the market fell at nearly all points Tuesday by mostly moderate amounts ranging from a couple of pennies to nearly 30 cents.

Although heating load was growing a bit Tuesday as colder temperatures spread farther south in the West and farther east into the Midwest and Midcontinent, prices were unable to sustain Monday’s big gains. Instead, the market fell at nearly all points Tuesday by mostly moderate amounts ranging from a couple of pennies to nearly 30 cents.

While Constellation Energy remains interested in scooping up generation assets in deregulated markets, the company’s cautious outlook on how quickly spark spreads and power prices will rebound in the U.S. is tempering enthusiasm for power plant acquisitions, E. Follin Smith, Constellation’s chief financial officer, said last Wednesday.

Even though natural gas-fired electric generation is being spread around the West more than ever, California remains a key market for the expected five-fold increase in daily Rocky Mountain supplies over the next five to seven years, a Houston-based consultant told an energy conference Thursday in Santa Fe, NM.

Even though natural gas-fired electric generation is being spread around the West more than ever, California remains a key market for the expected five-fold increase in daily Rocky Mountain supplies over the next five to seven years, a Houston-based consultant told an energy conference Thursday in Santa Fe, NM.

House Republican leaders have spread the word that they are planning an “Energy Week” this week, which will include a series of votes on various energy proposals. But Washington pundits, citing a continuing political split, expect little in the way of substantive action.