Stage

Gas price bulls can sit pretty this summer as industry analystsagree that the stage is set for strong demand, stressed supply andhigher prices in both the futures and cash markets.

Pacific Gas & Electric extended a high-inventory Stage 1 OFO(see Daily GPI, March 14) through todayand tightened the tolerance for positive imbalances from 3% to 1%.

Pacific Gas & Electric issued a high inventory Stage 1 OFOfor today with 3% tolerance for positive imbalances.

An actively traded over-the-counter market set the stage for aturbulent session Friday in the natural gas pit at Nymex andtraders did not disappoint — taking prices higher on the openbefore sending them lower in two distinct selling waves.

The 800-mile Maritimes & Northeast Pipeline took the stagelast week, but its supporting cast, the Sable Offshore EnergyProject, couldn’t make the show. After running the regulatory andpolitical gauntlet north of the border, the pipeline has been lefthanging by producers, who are more than a week away from initialdeliveries.

PG&E called a system-wide OFO with a 7% tolerance for gasday Saturday, Nov. 6, due to high inventory and forecasted highinventory for Sunday and today as well. The OFO called was Stage Iwith a $1.00/Dth noncompliance charge.

Pacific Gas & Electric issued a low-inventory Stage 1 OFOfor today. It carries penalties of $1/dth for negative dailyimbalances exceeding a relatively stringent 2% tolerance range.

Supportive physical prices and concerns over supply tightnesstook center stage yesterday in the natural gas pit at Nymex andthat gave bulls the impetus to post the seventh straight priceadvance. The September contract finished up 2.7 cents at $2.748after notching both a higher high and a higher low for the session.Estimated volume was 77,940 contracts.

PG&E declared a system-wide OFO with a 7% tolerance with aStage I non-compliance charge of $1.00/Dth due to high inventoryfor the weekend.