Sub-freezing low temperatures either continuing or returning Friday in sections of the Deep South proved insufficient to sustain higher prices in a modest majority of the cash market Thursday.
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Moderate Weather Spurs Drops at Most Points
While cooling load is due to grow in some areas Thursday and recede in others, the market saw too much overall weakness in weather fundamentals to sustain Tuesday’s general rally and fell at most points Wednesday. In addition, the screen had provided minuscule negative guidance for cash prices with a 1.9-cent drop by September futures Tuesday, and the perception of potential tropical storm threats to Gulf of Mexico production retreated somewhat.
Milder South, Midwest Cause Mostly Softness
Prices were unable to sustain the upward momentum of Monday’s spikes for the most part and softened at most points Tuesday. Although temperatures were due to continue dropping Wednesday in the Northeast, moderate warming trends will be under way in the Midwest and South. Also, intermediate-term weather forecasts appeared to be less bullish Tuesday than they had been Monday.
Price Dips at Nearly All Points Likely to Continue
A Tuesday gain of 5.1 cents by June natural gas futures proved unable to sustain that day’s cash rally through Wednesday. A few flat to slightly higher points averted a solid front of bearishness, but for the most part cash prices saw generally small declines Wednesday. A slow rise in the South’s air conditioning demand, which had received some credit for the Tuesday rally, was no longer able to offset the continuing lack of heating load in the northern half of the U.S.
Prices Flat to Down; TD6 Unlikely to Threaten Gulf
A continuing widespread heat wave and news of a new tropical disturbance east of the central Bahamas proved unable to sustain Wednesday’s overall price increases, resulting in Thursday numbers ranging from flat to down as much as 30 cents. Rockies/Pacific Northwest and California points were most resistant to softening.
Prices Mostly Up Again, But Face Screen Pressure
The cash market was able to sustain mostly moderate price increases through a second day Thursday, but may be hard pressed to score a hat trick Friday after major retreats in Nymex’s energy futures complex. The gas screen fell nearly 20 cents in response to a government report showing that net storage refills were already under way last week.
Dominion Showcases Growth in E&P in Analyst Meeting
Dominion Resources Inc. will need to sustain its recent strong performance for “at least a few quarters” before investors become comfortable with the inherent risks in its new system, which includes plans to build up its exploration and production (E&P) business, Merrill Lynch analysts said in a report last week.
Dominion Showcases Growth in E&P in Analyst Meeting
Dominion Resources Inc. will need to sustain its recent strong performance for “at least a few quarters” before investors become comfortable with the inherent risks in its new system, which includes plans to build up its exploration and production (E&P) business, Merrill Lynch analysts said in a report Wednesday.
Futures Sustain Rally Ahead of Storage Report
Putting some more distance between the declines experienced last week, July natural gas futures continued its run Wednesday, trading up 18.5 cents to settle at $6.489, a far cry from last Wednesday’s $5.96 low.
Screen Expected to Sustain Big Weather-Driven Gains
It hadn’t reached the southern tier of states or Mid-Atlantic quite yet, but wintry conditions or a reasonable facsimile dominated the weather picture Wednesday and forecasts for the next few days in the rest of the U.S. and Canada. The cash market responded with major gains that were as small as 15-30 cents in most of the West but hit 35-70 cents or so throughout the East.