Michigan citygates and intra-Alberta numbers stuck out like sorethumbs Wednesday in an incremental cash market where all otherpoints were dropping between a nickel and 20 cents. A furtherdecline in the November futures contract combined with continuingmild weather and the perception that Hurricane Mitch is only a veryremote threat to offshore production to cause the cash softness,sources said.
Articles from Stuck
Cash price quotes again put on their stuck-in-cement actWednesday as flatness remained the common denominator among mostmarkets. But snowy conditions in the Rockies couldn’t keep mostof the region’s pipes from softening into the mid $1.90s.Denver-Julesburg Basin gas into CIG yielded about the only Rockiesquotes still above $2. A Denver-area trading firm reportedly closedits offices early Wednesday because of the snowstorm, as did manyColorado schools.
The April Nymex contract lost yet another chance to break out ofits recent trading range by falling 3.8-cents to settle Thursday at$2.134. “If April were ever going to break out of its tradingrange, perhaps today was the day,” a trader told GPI. “April brokeabove major resistance at $2.19, and forecasts are calling foranother potential cold front next week. Yet April fell hard afterreaching a high of $2.205. That tells me there is no wayspeculators are buying into the fact that fundamentals warrant ahigher move. It also shows they are wary of initiating fresh longpositions,” he said.