Traders

The cash market for weekend and Monday delivery overall tumbled on average of just over a dime Friday as traders cited a lack of weekend demand and Monday temperatures in key metropolitan areas were forecast to reach no more than seasonal norms. Most points were lower, but California points were particularly hard hit.

Both cash and futures worked their way lower in active trading Tuesday with futures traders almost of the mind that $1-plus futures prices are just around the corner. The physical market saw broad weakness east of the Continental Divide, but cooler weather on the West Coast and additional loads at Northeast points provided notable strong points and quotes finished solidly in the black. At the close of futures trading May had shed 7.6 cents to $2.031 to reach a new set of 10-year low prices and June had dropped 7.1 cents to $2.152. May crude oil tumbled $1.44 to $101.02/bbl.

The head of the Commodity Futures Trading Commission (CFTC) Wednesday indicated that he would support the imposition of user fees on traders of futures and swaps to help fund the agency, similar to the system used at FERC.

Drilling activity in the Marcellus Shale helped push production in the Lower 48 states to a 1.4% (0.96 Bcf/d) increase in October compared with the previous month, according to the Energy Information Administration (EIA).

Transco Zone 6’s New York pool topped out at $13 and averaged nearly $12 Friday amid mixed price movement in most regions as traders kept in mind that the Sunday-through-Tuesday flows covered by their deals would be accompanied by the advent of frigid weather in much of the East. Several other Northeast points had peak quotes of $10 or more.

January natural gas fell slightly at expiration Wednesday as traders see the market in a balancing act between holding technical support and withstanding a storage surplus that is not only wide, but continuing to increase. By the close January shed 2.8 cents to $3.084 and February eased 2.9 cents to $3.121. February crude oil fell $1.98 to $99.36/bbl.

January futures moved lower Friday on very light volume, but traders saw the market entering what could be a prolonged period of sideways price movement that could eventually lead to an advance. At the close January had fallen 5.5 cents to $3.114 and February had retreated 5.9 cents to $3.147. February crude oil rose 15 cents to $99.68/bbl.

January natural gas finished flat Friday, but other months eased as traders don’t see any bullish factors and cite a technical trading objective 50 cents lower. January settled unchanged at $3.127 and February eased 0.3 cent to $3.174. January crude oil fell 34 cents to $93.53/bbl.

January natural gas swan-dived lower Friday as traders noted a continuing deterioration in both the fundamental and technical dimensions to the market. At the close January had fallen 14.0 cents to $3.317 and February had given up 13.3 cents to $3.353. January crude oil added $1.07 to $99.41/bbl.