The cash market showed it had not yet run out of steam, despite a futures rally faltering slightly a day earlier, as it logged increases across the board Wednesday in its third straight day of overwhelming firmness. Outside the well established major heat areas of the south-central and southwestern U.S., cooling load was no stronger than normal at best in the South and about to start receding to some extent in the Northeast following an extended above-normal period.
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Midcontinent Avoids East Softness; Most of West Firm
This week’s overall cash market rally was running out of steam for the most part Wednesday as mostly moderate weather and brimming storage facilities took their toll on the majority of prices. However, most western points were able to rise due to rising heat levels in the desert Southwest, chilly weather in the Rockies and Pacific Northwest and the easing of some excess supply/storage constraints.
Lack of Heating Load Asserts Itself in Lower Prices
The cash market began running out of steam Thursday after a couple of days of somewhat surprising bullish trading. Even with a slight cooling trend starting Friday in the Northeast and support from a January futures gain of nearly a quarter Wednesday, cash numbers were in retreat at most points Thursday.
LNG Transshipment Port Planned for Newfoundland
Newfoundland LNG launched plans last week to build North America’s first liquefied natural gas (LNG) storage and transshipment facility at Grassy Point on Placentia Bay in southeastern Newfoundland. The St. John’s, NF-based company is expecting a burgeoning market for LNG transshipment facilities for overseas imports entering the North American marketplace because of the economics of the LNG trade in the Atlantic Basin.
FERC Picking Up Steam on the Price Reporting Issue
FERC turned up the heat last week on the whole subject of price reporting as Chairman Pat Wood urged companies to get on the bandwagon before it’s too late and staff issued another request for comments to see if people believe the price surveys are improving.
Proposed CA Law on Energy Indexes Loses Steam
Even before the utility-state regulators bankruptcy settlement emerged, a high profile state legislative proposal (SB 173) to address what some lawmakers perceived as “unreliable” energy price indexes failed to move from its house of origin in the California Senate to the legislature’s lower house assembly. The failure to meet the June 6 state legislative deadline renders the proposal virtually dead for this year with the possibility it could re-emerge next year as a so-called “two-year bill.”
Weather-Induced Rally Loses Steam as Traders Turn to Storage
Bullied by winter weather — both outside their windows and in the latest forecasts — futures traders were quick to react Wednesday morning as they propelled natural gas prices above the $3.00 mark for the first time since November. In dramatic fashion, the January contract not only gapped higher on the open, but also gapped above psychological support at $3.00. However, after posting its $3.02 opening trade, the market fell lower throughout the session as traders looked apprehensively to today’s release of fresh storage data. The prompt month settled with a slim, 1.6-cent advance at $2.911, more than a dime off its high for the session.
Price Declines Expected to Get Steeper Today
This week’s price rally ran out of steam Thursday with nearly all points declining in double digits. Traders anticipated a moderation of the blast of winter that had invaded most of the nation except for the Southeast and Mid-Atlantic states, and also noted considerable weakness in the natural gas, crude oil and heating oil futures contracts.
Canadian Arctic Exploration Moves Full Steam Ahead
Undaunted by gyrating prices or Alaskan competition, the next big steps in reviving natural-gas exploration in the Canadian Arctic have begun on schedule.
Canadian Arctic Exploration Moves Full Steam Ahead
Undaunted by gyrating prices or Alaskan competition, the next big steps in reviving natural gas exploration in the Canadian Arctic have begun on schedule.