Spring

While the Northeast continued to bask in spring-like 60- to 70-degree temperatures in January for a second consecutive session, natural gas futures traders inexplicably continued to pressure upside resistance at $8. The February contract touched that level briefly before finishing out Tuesday at $7.967, up 8.8 cents from Monday’s finish.

Despite a spring-like warm-up in a number of regions across the country, February natural gas futures traders on Monday continued to follow last week’s script of attempting to break above $8. Much like last week, the contract did not make it, peaking at $7.940 before closing out the day at $7.879, up 3.8 cents from Friday.

Pacific Gas & Electric did not extend a systemwide high-inventory OFO beyond Tuesday.

In response to the industrywide sunburn developing from global warming concerns, Bellevue, WA-based Puget Sound Energy (PSE) this spring is rolling out a stepped-up smorgasbord of energy-saving programs with the dual purpose of combating global climate change and rising wholesale energy prices. The combination Puget Energy utility said it is increasingly directing more of its resources in western Washington state to “helping customers conserve electricity and natural gas.”

Last year was the warmest year on record for the United States and the spring-like temperatures during the final three weeks of the year led to the fourth warmest December since records began in 1895, according to a report Tuesday from the National Oceanic and Atmospheric Administration (NOAA).

Last year was the warmest year on record for the United States and the spring-like temperatures during the final three weeks of the year led to the fourth warmest December since records began in 1895, according to a report Tuesday from the National Oceanic and Atmospheric Administration (NOAA).

The cash market had plenty of negative guidance in recording double-digit losses across the board Thursday. The pleasantly seasonable mid-spring conditions that dominate the current weather picture, a lengthy futures slide that continued Thursday, and the usual drop in industrial load that lowers weekend volumes all added to a powerful price depressant.

Spring and summer gas prices will have to remain in the $6/MMBtu area (Henry Hub) or lower to rebuild industrial demand, stimulate gas-fired power generation (whose main competitor is now coal rather than residual fuel oil) and deter liquefied natural gas (LNG) imports, said Credit Suisse analyst Carl Kirst in a research note on Wednesday.

Lower natural gas prices and the approach of the spring planting season prompted Terra Industries to restart ammonia production on March 1 at its plants in Yazoo City, MS, and Billingham, Teesside, UK.