View

With the 2006-2007 winter now mostly in the rear-view mirror, traders and meteorologists alike are turning their attention to what kind of temperatures spring will bring to the United States. According to Andover, MA-based WSI Corp., the April through June forecast is expected to average warmer than normal in all locations except for the Pacific Coast states, which could start the natural gas storage injection season sooner than normal, but push electricity loads high enough in June to be bullish for power prices in the Midwest markets.

With the 2006-2007 winter now mostly in the rear-view mirror, traders and meteorologists alike are turning their attention to what kind of temperatures spring will bring to the United States. According to Andover, MA-based WSI Corp., the April through June forecast is expected to average warmer than normal in all locations except for the Pacific Coast states, which could start the natural gas storage injection season sooner than normal, but push electricity loads high enough in June to be bullish for power prices in the Midwest markets.

On the ground, ignoring a south-facing Pacific Ocean view that would make travel agents drool, 2,200 heavy construction workers and engineers scurry around a 200-acre site 60 miles south of the U.S.-Mexico border, preparing the new home for the first imports of liquefied natural gas (LNG) on the North American West Coast.

On the ground, ignoring a south-facing Pacific Ocean view that would make travel agents drool, 2,200 heavy construction workers and engineers scurry around a 200-acre site 60 miles south of the U.S.-Mexico border, preparing the new home for the first imports of liquefied natural gas (LNG) on the North American West Coast.

Adding more credibility to the view that the psychological $8 level could be a top, bullish natural gas futures traders on Friday were unable to push the March contract above $7.920 during a quiet, week-ending trading session. The prompt month traded a slim 11-cent range from $7.810 to $7.920 before calling it a week at $7.827, down 4.4 cents on the day but 35.1 cents higher than the previous Friday’s close.

Although emissions trading began in the United States, which is the world’s largest emitter of greenhouse gases, the United Kingdom and European Union are miles ahead in the development of a market for CO2 emissions credits. Now that Democrats control both houses of Congress, change could be afoot, but no one expects it to be quick or easy.

Canaccord Adams lowered its price assumptions for Henry Hub gas and WTI crude “to be more in line with our current view of weaker market conditions that are shaping up for 2007,” wrote analyst Irene Haas in a Wednesday note.

Canaccord Adams lowered its price assumptions for Henry Hub gas and WTI crude “to be more in line with our current view of weaker market conditions that are shaping up for 2007,” wrote analyst Irene Haas in a Wednesday note.

With the extreme heat that has cooked much of North America over the past three weeks now in the market’s rear-view mirror and Tropical Depression Chris having faded into oblivion over Cuba during the weekend, most of the cash market continued to drop Monday. But several Rockies/Pacific Northwest/San Juan-Permian ranged from flat to about 60 cents in response to a total shutdown of the Opal (WY) Plant for Tuesday’s gas day (see Daily GPI, July 17).